Credibility of Macroeconomic Policy: An Introduction and a Broad Survey
1987 (English)Report (Other academic)
This is a broad survey of the work on credibility of macroeconomic policy since the early 80's. I critically evaluate a first generation of work dealing with the basic credibility problem that arises when policy cannot be precommited and when a desireable policy fails to be ex post optimal. Then, the desireable policy is not credible to the private sector. The work I discuss, deals with credibility problems in three different areas of macroeconomics (i) "anti-inflationary monetary policy", (ii) "macroeconomic public finance", and (iii) "policy coordination". The first generation of work leaves several issues unresolved, however, and a second generation of work dealing with these unresolved issues is currently developing. I also discuss this very recent work and make some suggestions for future research.
Place, publisher, year, edition, pages
Stockholm: IIES , 1987. , 28 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 393
IdentifiersURN: urn:nbn:se:su:diva-41573OAI: oai:DiVA.org:su-41573DiVA: diva2:331209