On the gains from monetary policy commitment under deep habits
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- 作者：Gregory E. Givens
- 关键词：Deep habits ; Optimal monetary policy ; Commitment ; Discretion
- 刊名：Journal of Macroeconomics
- 出版年：2016
- 出版时间：December 2016
- 年：2016
- 卷：50
- 期：Complete
- 页码：19-36
- 全文大小：1117 K
- 卷排序：50
文摘
Examination of the time inconsistency problem in a sticky-price model with deep habits. Welfare gains from commitment relative to discretion are economically significant. Welfare gains from commitment are increasing in the degree of deep habits. Gains from commitment trace to the restrictions that deep habits impose on the Phillips curve. Short-term policy commitments are generally sufficient to avoid discretionary losses.