Dealing with Time Inconsistency: Inflation Targeting versus Exchange Rate Targeting
Adopting a single instead of multiple targets can be an effective way to overcome the classic time-inconsistency problem. The choice of a single mandate depends on the trade openness and the credibility. Reduced-form empirical results show as central banks become less credible, they are more likely...
Main Authors: | , , |
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Format: | Article |
Language: | English |
Published: |
Blackwell Publishing Inc.
2018
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Subjects: | |
Online Access: | View Fulltext in Publisher |