Monetary Policy without Commitment

• 成果类型: Article
• 署名作者: Afrouzi, Hassan; Halac, Marina; Rogoff, Kenneth; Yared, Pierre
• 署名单位: Columbia University; National Bureau of Economic Research; Yale University; Centre for Economic Policy Research - UK; Harvard University; Columbia University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282; 1944-7981
• DOI: 10.1257/aer.20241925
• 发表日期: 2026-07
• 页码: 2422-2453
• 关键词: staggered prices; inflation; DISCRETION

摘要

This paper studies the implications of central bank credibility for long-run inflation and inflation dynamics. We introduce central bank lack of commitment into a standard nonlinear New Keynesian economy with sticky-price monopolistically competitive firms. Inflation is driven by the interaction of lack of commitment and the economic environment. We show that long-run inflation increases following an unanticipated permanent increase in the labor wedge or decrease in the elasticity of substitution across varieties. In the transition, inflation overshoots and then gradually declines. Quantitatively, inflation overshooting is persistent, and the welfare loss from lack of commitment relative to inflation targeting is large. (JEL D43, E12, E23, E24, E31, E52, E58)