Evaluating Policy Rules Under Imperfect Credibility:
Evaluation of policy rules using empirical macroeconomic models is usually done on the assumption that the rules are perfectly credible. However, there are usually circumstances that cause the authorities to abandon any given rule. The public's expectations reflect this possibility. In the pape...
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| Main Author: | |
|---|---|
| Format: | Electronic eBook |
| Language: | English |
| Published: |
Washington, D.C
International Monetary Fund
1991
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| Series: | IMF Working Papers
Working Paper No. 91/128 |
| Online Access: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
| Summary: | Evaluation of policy rules using empirical macroeconomic models is usually done on the assumption that the rules are perfectly credible. However, there are usually circumstances that cause the authorities to abandon any given rule. The public's expectations reflect this possibility. In the paper, credibility is assumed to depend on the probability that the authorities will abandon a rule because the resulting utility exceeds that from maintaining the rule. Simulations of a disinflation policy leading to price stability are presented. Its credibility varies over time, depending on the paths for output and inflation |
| Physical Description: | 1 Online-Ressource (24 p) |
| ISBN: | 1451855028 9781451855029 |
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| indexdate | 2024-07-10T09:35:27Z |
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| spelling | Masson, Paul R. Verfasser aut Evaluating Policy Rules Under Imperfect Credibility Masson, Paul R Washington, D.C International Monetary Fund 1991 1 Online-Ressource (24 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 91/128 Evaluation of policy rules using empirical macroeconomic models is usually done on the assumption that the rules are perfectly credible. However, there are usually circumstances that cause the authorities to abandon any given rule. The public's expectations reflect this possibility. In the paper, credibility is assumed to depend on the probability that the authorities will abandon a rule because the resulting utility exceeds that from maintaining the rule. Simulations of a disinflation policy leading to price stability are presented. Its credibility varies over time, depending on the paths for output and inflation Online-Ausg Symansky, Steven A. Sonstige oth http://elibrary.imf.org/view/IMF001/02133-9781451855029/02133-9781451855029/02133-9781451855029.xml Verlag URL des Erstveröffentlichers Volltext |
| spellingShingle | Masson, Paul R. Evaluating Policy Rules Under Imperfect Credibility |
| title | Evaluating Policy Rules Under Imperfect Credibility |
| title_auth | Evaluating Policy Rules Under Imperfect Credibility |
| title_exact_search | Evaluating Policy Rules Under Imperfect Credibility |
| title_exact_search_txtP | Evaluating Policy Rules Under Imperfect Credibility |
| title_full | Evaluating Policy Rules Under Imperfect Credibility Masson, Paul R |
| title_fullStr | Evaluating Policy Rules Under Imperfect Credibility Masson, Paul R |
| title_full_unstemmed | Evaluating Policy Rules Under Imperfect Credibility Masson, Paul R |
| title_short | Evaluating Policy Rules Under Imperfect Credibility |
| title_sort | evaluating policy rules under imperfect credibility |
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