This paper offers a critique of the UK government's Medium Term Financial Strategy from a policy optimization perspective. It argues that recent versions of the MTFS can be interpreted as representing the outcome of a policy optimization exercise, but that certain key aspects remain unclear....

This paper offers a critique of the macroeconomic policy stance of the U.K. Conservative administration from a policy optimization perspective. Attention is focused on three particular issues which, it is argued, require clarification in the medium term financial strategy. The first concerns the...

This paper investigates the design of monetary policy in inflation targeting regimes. It is partly motivated by our view that, despite the widespread adoption on inflation targeting regimes in a number of countries including the UK, the policy debate is insufficiently concerned with the central...

This paper is concerned with the calculation of time consistent macroeconomic policies. We provide a taxonomy for four different infinite horizon time consistent equilibria, combining Nash and Stackelberg behaviour on the part of the policymaker with either open loop or feedback strategies. We...