Working Paper

Dynamic commitment and imperfect policy rules


Abstract: An examination of the dynamics of commitment, showing that because the decision regarding rules versus discretion occurs in real time, opting for discretion is often the better choice, since it leaves open the possibility of adopting rules later on.

Keywords: Monetary policy;

https://doi.org/10.26509/frbc-wp-199601

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Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Working Papers (Old Series)

Publication Date: 1996

Number: 9601