题目： Imperfect Credibility in Optimal Monetary Policy

主讲人： Lu, Yang Assistant Professor, HKUST

Abstract

How should a committed policymaker optimally design his plans when private agents are skeptical that these plans will be carried out? We pose this policy question in a reputation game between policymakers of various typesand private agents, and in a setting with private agents being forward-looking, as is standard in macroeconomics. We provide a recursive formulation of the optimal policy problem, whose constraints involve rational Bayesian learning by private agents and incentive constraints associated with regulating the behavior of an alternative opportunistic policymaker. This recursive method makes it feasible to study the dynamics of reputation effects on optimal policy.