01659cas a2200241 a 4500 AALejournalIMF009992 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451952575 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Monetary Policy Strategies. Washington, D.C. : International Monetary Fund, 1988. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper considers the merits of rules and discretion for monetary policy when the structure of the macroeconomic model and the probability distributions of disturbances are not well defined. It is argued that when it is costly to delay policy reactions to seldom-experienced shocks until formal algorithmic learning has been accomplished, and when time consistency problems are significant, a mixed strategy that combines a simple verifiable rule with discretion is attractive. The paper also discusses mechanisms for mitigating credibility problems and emphasizes that arguments against various types of simple rules lose their force under a mixed strategy. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1988/088 Full text available on IMF http://elibrary.imf.org/view/journals/001/1988/088/001.1988.issue-088-en.xml IMF e-Library