Similar Search Results

Central bank transparency and nonlinear learning dynamics

Eusepi, Stefano - 2008

shows that agents' learning and the dynamics of the economy are heavily affected by central bank transparency about its … policy rule. A central bank that does not communicate its rule can induce 'learning equilibria' in which the economy …

Persistent link: https://www.econbiz.de/10010283511

The science of monetary policy : an imperfect knowledge perspective

Eusepi, Stefano; Preston, Bruce - 2016

New Keynesian theory identifies a set of principles central to the design and implementation of monetary policy. These principles rely on the ability of a central bank to manage expectations precisely, with policy prescriptions typically derived under the assumption of perfect information and...

Persistent link: https://www.econbiz.de/10011496866

Comparing forecast-based and backward-looking Taylor rules: A global analysis

Eusepi, Stefano - 2005

other learnable 'global' equilibria such as cycles and sunspots. Moreover, under learning dynamics, the economy can fall …

Persistent link: https://www.econbiz.de/10010283458

Central bank transparency and nonlinear learning dynamics

Eusepi, Stefano (contributor) - 2008

shows that agents’ learning and the dynamics of the economy are heavily affected by central bank transparency about its … policy rule. A central bank that does not communicate its rule can induce “learning equilibria” in which the economy … helps stabilize expectations around the inflation target equilibrium. -- Monetary policy ; nonlinear dynamics ; learning …

Persistent link: https://www.econbiz.de/10003781685

Forward guidance with unanchored expectations

Eusepi, Stefano; Gibbs, Chris; Preston, Bruce - 2021

We study zero interest-rate policy in response to a large negative demand shock when long-run expectations can fall over time. Because falling expectations make monetary policy less effective by raising real interest rates, the optimal forward guidance policy makes large front-loaded promises to...

Persistent link: https://www.econbiz.de/10012614064

Some Implications of Learning for Price Stability

Eusepi, Stefano - 2017

Survey data on expectations of a range of macroeconomic variables exhibit low-frequency drift. In a New Keynesian model consistent with these empirical properties, optimal policy in general delivers a positive inflation rate in the long run. Two special cases deliver classic outcomes under...

Persistent link: https://www.econbiz.de/10012965196