IDEAS home Printed from https://ideas.repec.org/a/taf/jeduce/v37y2006i3p340-347.html
   My bibliography  Save this article

A Graphical Exposition of the Inconsistency of Optimal Monetary Plans

Author

Listed:
  • Frank G. Steindl

Abstract

Abstract: The author presents a geometrical framework in which the inability of discretionary policy (consistent policy in the sense of Kydland and Prescott) to be socially optimal is demonstrated. Policy based on a rule results in a higher level of utility. The author extends the model to demonstrate that policy of a Rogoff conservative central banker results in approaching the same equilibrium as that from a monetary rule. Finally, the framework shows that attempts to exploit the Phillips curve result in stagflation.

Suggested Citation

  • Frank G. Steindl, 2006. "A Graphical Exposition of the Inconsistency of Optimal Monetary Plans," The Journal of Economic Education, Taylor & Francis Journals, vol. 37(3), pages 340-347, July.
  • Handle: RePEc:taf:jeduce:v:37:y:2006:i:3:p:340-347
    DOI: 10.3200/JECE.37.3.340-347
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.3200/JECE.37.3.340-347
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.3200/JECE.37.3.340-347?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pavel S. Kapinos, 2014. "Myopia, Discretion, and Commitment in a Two‐Period AS/AD Model," Southern Economic Journal, John Wiley & Sons, vol. 80(4), pages 1055-1069, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jeduce:v:37:y:2006:i:3:p:340-347. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/VECE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.