Loading...
Please wait, while we are loading the content...
Similar Documents
Digitized by the Internet Archive in 2011 with Funding from Boston Library Consortium Iviember Libraries Working Paper Department of Economics
| Content Provider | Semantic Scholar |
|---|---|
| Author | Fischer, Stanley L. |
| Copyright Year | 2011 |
| Abstract | The paper investigates the circumstances under which the problem of dynamic inconsistency arises, and discusses its implications for control theory and optimal policy^naking . The problem arises when the government does not have non-distortionary control instruments at its disposal and when expectations of future variables are relevant to current private sector decisions. It can also arise if the policy maker's utility function differs from that of the representative individual. The problem may disappear if co-operative behavior can be induced. The problem does not preclude the use of optimal control theory in economic policy analysis, but raises serious issues about the tj^es of optimal control paths that are most relevant for policy making. *Communications should be sent to Stanley Fischer, E52-280A, M.I.T., Cambridge, Mass. 02139 |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://dspace.mit.edu/bitstream/handle/1721.1/63457/dynamicinconsist00fisc.pdf;jsessionid=2F379A2B00A982EBF4E7677EFE6597F6?sequence=1 |
| Alternate Webpage(s) | http://dspace.mit.edu/bitstream/handle/1721.1/63457/dynamicinconsist00fisc.pdf?sequence=1 |
| Alternate Webpage(s) | http://dspace.mit.edu/bitstream/handle/1721.1/63817/monetarypolicype00fisc.pdf?sequence=1 |
| Alternate Webpage(s) | http://dspace.mit.edu/bitstream/handle/1721.1/63817/monetarypolicype00fisc.pdf;jsessionid=FA22182DFCD4C3631CAEB9F434EFF520?sequence=1 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
