@techreport{NBERw8139,
 title = "How Severe is the Time Inconsistency Problem in Monetary Policy?",
 author = "Stefania Albanesi and V.V. Chari and Lawrence J. Christiano",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "8139",
 year = "2001",
 month = "February",
 URL = "http://www.nber.org/papers/w8139",
 abstract = {We analyze two monetary economies - a cash-credit good model and a limited participation model.  In our models, monetary policy is made by a benevolent policymaker who cannot commit to future policies.  We define and analyze Markov equilibrium in these economies.  We show that there is no time inconsistency problem for a wide range of parameter values.},
}