In the framework of a standard overlapping generations model, it is shown that active inflation forecast targeting reinforces mechanisms that lead to indeterminacy of the monetary steady state and to countercyclical behavior of young-age consumption. The inflation forecast targeting rule which...

We derive a sharp upper bound on the minimal forecast horizon in the discounted dynamic lot size model with constant initial demand. This bound is given by m(m 1), where m is the EOQ's worth, i.e., the number of periods for which the total demand equals Economic Order Quantity. Our results do...

In the framework of a standard overlapping generations model, it is shown that active inflation forecast targeting reinforces mechanisms that lead to indeterminacy of the monetary steady state and to countercyclical behavior of young-age consumption. The inflation forecast targeting rule which...

This article considers the problem of equipment replacement in which the replacement decision at a particular time must take into account (i) the state of the existing machine in use, (ii) the available replacement alternatives at the time, (iii) the future advances in the relevant technologies...

The concept of a forecast horizon for a given player with respect to the set of equilibria in an abstract dynamic game is defined. Consideration is then given to the case of a stochastic dynamic game with memory-less perfect state information and the Nash equilibrium concept. Sufficient...