Dolado, Juan; Ramón Pedrero; Ruge-Murcia, Francisco - In: Studies in Nonlinear Dynamics & Econometrics 8 (2007) 3, pp. 1155-1155
This paper derives optimal monetary policy rules in setups where certainty equivalence does not hold because either central bank preferences are not quadratic, and/or the aggregate supply relation is nonlinear. Analytical results show that these features lead to sign and size asymmetries, and...