407 research outputs found
Limited Commitment, Inaction and Optimal Monetary Policy
This paper examines the optimal frequency of monetary policy meetings when their schedule is pre-announced. Our contribution is twofold. First, we show that in the standard New Keynesian framework infrequent but periodic revision of monetary policy may be desirable even when there are no explicit costs of policy adjustment. Adjustment of policy on a pre-announced schedule de facto acts as a commitment not to adjust in intermediate periods. We find that at short horizons gains from such commitment outweigh welfare costs of central bank's inaction. Second, we solve for the optimal frequency of policy adjustment and characterize its determinants. When applied to the U.S. economy, our analysis suggests that the Federal Open Markets Committee should revise the federal funds target rate no more than twice a year.central bank, monetary policy, commitment, stabilization bias.
Quadratic Time Computable Instances of MaxMin and MinMax Area Triangulations of Convex Polygons
We consider the problems of finding two optimal triangulations
of a convex polygon: MaxMin area and MinMax area. These are the
triangulations that maximize the area of the smallest area triangle in a triangulation,
and respectively minimize the area of the largest area triangle
in a triangulation, over all possible triangulations. The problem was originally
solved by Klincsek by dynamic programming in cubic time [2]. Later,
Keil and Vassilev devised an algorithm that runs in O(n^2 log n) time [1]. In
this paper we describe new geometric findings on the structure of MaxMin
and MinMax Area triangulations of convex polygons in two dimensions and
their algorithmic implications. We improve the algorithm’s running time to
quadratic for large classes of convex polygons. We also present experimental
results on MaxMin area triangulation
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