On Multiperiod Policy Implementation Model

It is intended here to investigate the basic structures and functions of the so-called "reputation" regime of macroeconomic policy-making by making use of a simple macro-model as composed of aggregate Lucas-type supply and ordinary demand functions in a familiar static framework of two targets and one policy instrument. The regime is conceived as one of many possible compromises between commitment and discretion, possible in a multi-period setting of the intrinsically static model, and the private sector's way of rational expectations is shown to be decisive in what reputation regime is concretely effected as a substitute for unrealistic commitment.

論説 (Article)