The Issue of Time Inconsistency Revisited as an Extended Game
نویسندگان
چکیده
We reformulate the monetary policy model of Barro and Gordon (1983a) by using an extended game with observable delay where the hierarchy of play between the central bank and the private sector is endogenous. This allows us to endogenise the institutional setup wherein the monetary policy game takes place. We show that positive inflation may be observed due to mixed strategies rather than time inconsistency.
منابع مشابه
بررسی و تبیین مشکل ناسازگاری زمانی
In very, simple words, time inconsistency means failing to conduct programs in consistence with time. In other words, time inconsistency refers to a situation where economic decision-makers preferences transform a long time in a way that what they preferred at a certain time point is not consistent with their preferences at other time points. In everyday life, we always face time inconsistency....
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عنوان ژورنال:
- IGTR
دوره 13 شماره
صفحات -
تاریخ انتشار 2010