Optimal Monetary Policy Rules from a Timeless Perspective
The timelessly optimal monetary policy proposed by Woodford (2003) may be dominated by alternative timeless policies. We provide a formal justification for these alternative policies. We demonstrate why discount rates do not matter and establish that optimizing over the unconditional expectation of the policy criterion function recovers these alternative strategies.
|Date of creation:||15 Oct 2005|
|Date of revision:|
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