There is an extensive empirical literature on political business cycles, but its theoretical foundations are grounded in pre-rational-expectations macroeconomic theory. Here the authors show that electoral cycles in taxes, government spending, and money growt h can be modeled as an equilibrium...

This paper looks at the incentives of individual members of a monetary policy committee to gain a reputation for inflationary toughness. I show a policy maker can have more or less incentive to build a reputation when part of a group. But, group policy making leads to higher expected social...

This paper looks at the incentives of individual members of a monetary policy committee to gain a reputation for inflationary toughness. I show a policy maker can have more or less incentive to build a reputation when part of a group. But, group policy making leads to higher expected social...