Webbetween adopting a policy rule versus pure discretion. Instead it can choose to adopt a discretionary regime that has rule-like attributes, a regime that Ben Bernanke and I referred to as “constrained discretion” in Bernanke and Mishkin (1997). However, how can be discretion be constrained so it avoids the disadvantages of pure discretion? WebO A. Constrained discretion is a type of discretion that is less flexible with monetary policy. O B. With constrained discretion policymakers believe that rules should be followed, and judgment should only be used when economic models are incorrect OC. Constrained discretion is a less transparent and disciplined type of discretion.
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WebFeb 3, 2003 · Constrained discretion and inflation targeting. I mentioned at the beginning of the talk that constrained discretion characterizes at least to some degree the policy approach of many of the major central banks around the world. It is, in fact, closely … "Constrained discretion" and monetary policy. Governor Ben S. Bernanke … Board of Governors Contact For all inquiries not addressed on the topic tabs on the … WebAug 7, 2012 · The way I look at it, the role of the IMF under the Bretton Wood system of fixed exchange rates and generalized capital controls can be viewed as a constrained discretion commitment device: under the rules of the Bretton Woods system, a member experiencing temporary balance of payments problems went to the IMF for financing – … multi-functional slitting planer
Constrained Discretion and Central Bank Transparency
WebWhat is constrained discretion? The approach to monetary policy that I call constrained discretion can be defined by two simple and parsimonious principles. First, through its words and (especially) its actions, the central bank must establish a strong commitment to keeping inflation low and stable. WebConstrained discretion is a less transparent and disciplined type of discretion. OB. With constrained discretion, policymakers follow a set plan and stick to the plan to achieve … WebConstrained definition, forced, compelled, or obliged: a constrained confession. See more. how to measure pr interval ekg