How does the time consistency problem apply to the conduct of monetary policy? How might long terms

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How does the time consistency problem apply to the conduct of monetary policy?

How might long terms of office for central bankers help overcome it?

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Money Banking And Financial Markets

ISBN: 9781260226782

6th Edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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Question Posted: Mar 21, 2024 05:42 AM

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How do long terms of office for central bankers help overcome the problem of time inconsistency in monetary policy?
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How does the time consistency problem apply to the conduct of monetary policy? How might long terms

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The time consistency problem in the context of monetary policy refers to the challenge of maintaining credibility and commitment to a policy stance ov...View the full answer

Money Banking And Financial Markets

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