Solution and control of linear rational expectations models with structural effects from future instruments

Authors
Blake, AP
Citation
Ap. Blake, Solution and control of linear rational expectations models with structural effects from future instruments, ECON LETT, 67(3), 2000, pp. 283-288
Citations number
4
Categorie Soggetti
Economics
Journal title
ECONOMICS LETTERS
ISSN journal
01651765 → ACNP
Volume
67
Issue
3
Year of publication
2000
Pages
283 - 288
Database
ISI
SICI code
0165-1765(200006)67:3<283:SACOLR>2.0.ZU;2-K
Abstract
A solution and control method is developed for rational expectations models where future instruments enter the model directly, such as when expected i nterest rates feature in an inflation control problem. Such models are intr insically time-inconsistent without additional jump variables. (C) 2000 Els evier Science S.A. All rights reserved.