Basu, Susanto; Kimball, Miles Spencer; Weil, David; … - National Bureau of Economic Research (NBER) - 1990
This paper addresses the issue of how to give optimal advice about monetary policy when it is known that the advice may not be heeded. We examine a simple macroeconomic model in which monetary policy has the ability to stabilize output by offsetting exogenous shocks to aggregate demand. The...