in welfare terms is equivalent to moving from discretion to precommitment, the inflation equivalent. In the estimated … between precommitment and discretionary policy in both a stylized theoretical framework and in estimated data …-consistent models. From the precommitment and discretionary solutions we calculate the permanent deviation of inflation from target that …

in welfare terms is equivalent to moving from discretion to precommitment, the "inflation equivalent." In the estimated … between precommitment and discretionary policy in both a stylized theoretical framework and in estimated data …-consistent models. From the precommitment and discretionary solutions we calculate the permanent deviation of inflation from target that …

in welfare terms is equivalent to moving from discretion to precommitment, the inflation equivalent. In the estimated … between precommitment and discretionary policy in both a stylized theoretical framework and in estimated data …-consistent models. From the precommitment and discretionary solutions we calculate the permanent deviation of inflation from target that …

characterized with a continuum from pure discretion to full commitment. Second, we solve the optimal and robust targeting rules when …

central bank conducts policy under discretion as opposed to commitment. Inflation targeting can also reduce the size of the …

losses both under discretion and commitment. We compare the performance of unrestricted optimal rules to the performance of … optimal simple rules. The results indicate that there are considerable gains from commitment over discretion, probably due to … the stabilization bias present under discretion. The lagged variant of the Taylor type of rule that allows for interest …

policy rules and commitment strategies, typically absent under discretion. But when a policymaker has some private … information - as is the case in reality - belief management becomes an integral part of optimal discretion policies, too. Solving …

modes of optimization, termed commitment and discretion. I estimate the model separately under each policy using maximum …

Optimal monetary policy under discretion is analysed in a New Keynesian model with rule of thumb pricing. The paper …