Rogoff revisited: The conservative central banker proposition under active fiscal policies
The paper re-examines Rogoff's [Rogoff, K., 1985. The Optimal Degree of Commitment to an Intermediate Monetary Target. Quarterly Journal of Economics 100, 1169-1189.] influential monetary policy result. It shows that responses of a conservative central banker and the resulting macroeconomic outcomes may be substantially different if interactions with (ambitious) fiscal policy are taken into account.
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- Andrew Hughes Hallett & Jan Libich, 2007. "Fiscal-monetary Interactions: The Effect of Fiscal Restraint and Public Monitoring on Central Bank Credibility," Open Economies Review, Springer, vol. 18(5), pages 559-576, November.
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- Hughes Hallett, Andrew & Libich, Jan & Stehlík, Petr, 2007.
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CEPR Discussion Papers
6586, C.E.P.R. Discussion Papers.
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"Inflation and Reputation,"
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American Economic Association, vol. 75(3), pages 530-38, June.
- Walsh, Carl E, 1995. "Optimal Contracts for Central Bankers," American Economic Review, American Economic Association, vol. 85(1), pages 150-67, March.
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- Avinash Dixit & Luisa Lambertini, 2003.
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- Avinash Dixit & Luisa Lambertini, 2003. "Interactions of Commitment and Discretion in Monetary and Fiscal Policies," American Economic Review, American Economic Association, vol. 93(5), pages 1522-1542, December.
- Rogoff, Kenneth, 1985. "The Optimal Degree of Commitment to an Intermediate Monetary Target," The Quarterly Journal of Economics, MIT Press, vol. 100(4), pages 1169-89, November.
- Andrew Hughes Hallet & Jan Libich & Petr Stehlik, 2008.
"Welfare Improving Coordination Of Fiscal And Monetary Policy,"
CAMA Working Papers
2008-04, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Andrew Hughes Hallett & Jan Libich & Petr Stehlík, 2011. "Welfare Improving Coordination of Fiscal and Monetary Policy," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 5(1), pages 007-026, March.
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