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This paper proposes a simple framework for analyzing a continuum of monetary policy rules characterized by differing degrees of credibility, in which commitment and discretion become special cases of what we call quasi commitment. The monetary policy authority is assumed to formulate optimal...
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"We propose a model of the interbank money market with an explicit role for central bank intervention and periodic reserve requirements, and study the interaction of profit-maximizing banks with a central bank targeting interest rates at high frequency. The model yields predictions on biweekly...
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This paper investigates the consequences of debt stabilization for inflation targeting. If the monetary authority … perfectly stabilizes inflation while the fiscal authority holds constant the real value of debt at maturity, the equilibrium … inflation targeting appears to be more robust than flexible debt targeting to alternative parameter configurations and steady …
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