Policymakers be tempted to renege on an announcement

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what is meant by the ''time inconsistency'' of economic policy? Why might policymakers be tempted to renege on an announcement they made earlier? In this situation, what is the advantage of a policy rule?

Reference no: EM131123183

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Policymakers be tempted to renege on an announcement : what is meant by the ''time inconsistency'' of economic policy? Why might policymakers be tempted to renege on an announcement they made earlier? In this situation, what is the advantage of a policy rule?

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