Items related to Expectations, Learning, and Discretionary Policymaking

Expectations, Learning, and Discretionary Policymaking - Softcover

Jensen, Christian

 
9781249570202: Expectations, Learning, and Discretionary Policymaking
Softcover
ISBN 10: 1249570204 ISBN 13: 9781249570202
Publisher: Bibliogov, 2012

Synopsis

When policy forecasts are based on the policymaker's present and past actions, current policy affects expectations of future policy, contrary to what happens when forecasters can replicate policymaking perfectly. We show that when forecasts are generated through any linear combination of present and past policy functions that produces expectations consistent with the implemented policy, the optimal discretionary policy exploiting learning converges toward the optimal commitment plan as we approach a situation where people do not discount the future. Since influencing expectations permits improving policy, successful policymakers need to know how policy expectations are formed and how they can affect these expectations.

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Publisher
Bibliogov
Publication date
2012
Language
English
ISBN 10 
1249570204
ISBN 13 
9781249570202
Binding
Paperback
Number of pages
24