Nowhere are contingent policies more necessary.As lenders of last resort, central banks are contingent suppliers of liquidity.
Of course, monetary policy in America (and perhaps, before long, in other countries) has reached the zero bound and can no longer fill this contingent role.Can other contingent policies be created or enhanced to eliminate tail risks?
It seems to me, by contrast, that the way to deal with uncertainty is through contingent policies that are triggered when a predetermined bad state of the economy is reached.
He also offered some support for the policy (having raised objections when it was introduced in August): As many people have pointed out, a distinguishing feature of a state-contingent policy is that people cannot be certain about the date at which the relevant state, in our case unemployment of seven per cent, will be reached.
By finally making federal grants contingent on policy changes, the government has pushed states to develop strategies for turning around chronically failing schools, establish data-driven systems for training and evaluating teachers and adopt the new, more-rigorous standards released earlier this year by the National Governors Association.
Expanded adoption, however, may be contingent upon policy changes, such as modification to the risk equalization system, that increase incentives for insurers who implement programs to improve population health and consequently bend the curve on health care cost escalation.
Under some conditions for collaborative teams, we demonstrate that individual and contingent reward policies can achieve maximal benefits (first-best) for the organization.
Conservatives in the GOP had been urging the leadership to make increasing the borrowing limit contingent upon a policy demand, but in the end the party was unable to coalesce around a single proposal.
A regulation consisting of a sanction scheme contingent on fiscal policy joint with a fixed transfer is shown to provide the appropriate incentives for budget discipline in the presence of elections.
Twenty-nine stands (and Washington, DC) have given residents access to some form of medical marijuana, eight have legalized recreational use, and a contingent of politicians, policy experts, and advocacy groups continue to fight for further decriminalization.
