Essays on monetary policy and banking regulation

by Li, Jingyuan

Abstract (Summary)
A central bank is usually assigned two functions: the control of in?ation and the maintenance of a safetybanking sector. What are the precise conditions under which trigger strategies from the private sector can solve the time inconsistency problem and induce the central bank to choose zero inflation under a nonstationary natural rate? Can an optimal contract be used together with reputation forces to implement a desired socially optimal monetary policy rule? How to design a truthtelling contract to control the risk taking behaviors of the bank? My dissertation attempts to deal with these issues using three primary methodologies: monetary economics, game theory and optimal stochastic control theory.
Bibliographical Information:

Advisor:Tian, Guoqiang; DeBlassie, Dante; Jansen, Dennis; Sarin, Rajiv

School:Texas A&M University

School Location:USA - Texas

Source Type:Master's Thesis

Keywords:time consistency optimal contract banking regulation stopping risk taking monetary policy


Date of Publication:08/01/2004

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