Supermajority voting rules: balancing commitment and flexibility
When optimal policymaking is subject to dynamic inconsistencies (Kydland and Prescott, 1977), but shocks hit the economy after private agents form expectations, there is a trade off between the need to commit to a policy, and the need to retain discretion so as to respond to shocks. Rogoff (1985) sh...
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| Format: | Working paper |
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University of Oxford
2002
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