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Commitment as irreversible investment Author info | Abstract | Publisher info | Download info | Related research | Statistics Joseph G. Haubrich
Joseph A. Ritter
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Considering time inconsistency as a problem of irreversible investment brings some neglected points to the fore. Making a policy choice in real time and under current conditions emphasizes the importance of the timing of commitment, the regret over past decisions, and the option value of not committing. This paper applies these concepts to monetary policy, banking regulation, and capital taxation.
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Paper provided by Federal Reserve Bank of Cleveland in its series Working Paper with number
9217.
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Date of creation: 1992Date of revision:
Handle: RePEc:fip:fedcwp:9217Contact details of provider: Postal: 1455 East 6th St., Cleveland OH 44114 Phone: 216.579.2000 Web page: http://www.clevelandfed.org/ More information through EDIRC
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Keywords: Monetary policy Other versions of this item:
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Modigliani, Franco, 1977.
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Auernheimer, Leonardo, 1974.
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Joseph G. Haubrich & Joseph A. Ritter, 1998.
"Dynamic commitment and imperfect policy rules ,"
Working Papers
1995-015, Federal Reserve Bank of St. Louis.
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