• Loose Commitment in Medium-Scale Macroeconomic Models: Theory and an Application 

      Debortoli, Davide; Maih, Junior; Nunes, Ricardo (Working Papers;25/2010, Working paper, 2010)
      This paper proposes a method and a toolkit for solving optimal policy with imperfect commitment in linear quadratic models. As opposed to the existing literature, our method can be employed in medium- and large-scale models ...
    • When Preferences for a Stable Interest Rate Become Self-Defeating 

      Alstadheim, Ragna; Røisland, Øistein (Working Papers;8/2016, Working paper, 2016)
      Monetary policy makers often seem to have preferences for a stable interest rate, in addition to stable inflation and output. In this paper we investigate the implications of having an interest rate level term in the loss ...