Lin, Xiang (Dept. of Economics, Stockholm University)
Abstract
Waller and Walsh (1996) argue that the optimal length of the central banker can exceed one period when the central bank is conservative enough. However, the optimal conservativeness is unlikely to be exogenous. In this note we show how the optimal conservativeness and the optimal term length are determined simultaneously in the framework of Waller and Walsh. Furthermore, we extend the study to the inflation contract and the inflation target regimes. Under both regimes, the optimal parameter of the conservativeness is independet of the term length and is always 1. Moreover, it is possible of have an optimal multi-term central banker under both the state-contingent inflation contract regime and the state-contingent inflation target regime.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number
1997:11.
Length: 15 pages Date of creation: 02 Jun 1998 Date of revision: Handle: RePEc:hhs:sunrpe:1997_0011
Contact details of provider: Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden Phone: +46 8 16 20 00 Fax: +46 8 16 14 25 Email: Web page: http://www.ne.su.se/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Sten Nyberg).
Find related papers by JEL classification: E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
This paper has been announced in the following NEP Reports:
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.:
Did you know? Each page is provided with a technical contact, in case something is not right with the supplied information. See under "publisher info".