More on the time consistency of monetary policy

• 成果类型: Article
• 署名作者: Nicolini, JP
• 署名单位: Universidad Torcuato Di Tella
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(97)00079-2
• 发表日期: 1998
• 页码: 333-350
• 关键词: Monetary policy; time inconsistency

摘要

We introduce costs of unexpected inflation in a general equilibrium monetary model by changing the timing of the constraints faced by consumers. We show that in this environment monetary policy is still time inconsistent, but the nature of the inconsistency is very different from the standard result found in the literature. In particular, we find that the government may find optimal to deviate by choosing inflation rates lower than expected. By making a brief review of the monetary literature, we argue that the model of this paper is more attractive than the ones proposed before to study the time consistency of optimal monetary policy. (C) 1998 Elsevier Science B.V. All rights reserved.