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Monetary consequences of alternative fiscal policy rules

Railavo, Jukka - Suomen Pankki - 2004

optimise. Under discretionary monetary policy the size of the inflation bias depends on the fiscal policy regime. Using the … with the alternative fiscal policy rules, and inflation and output persistence reflects the economic data. With the deficit …

Persistent link: https://www.econbiz.de/10005207156

Essays on macroeconomic effects of fiscal policy rules

Railavo, Jukka - Suomen Pankki - 2006

supply-side effects into account, we get more persistent inflation and output reactions. We also show that the dichotomy does …, under a discretionary monetary policy, the fiscal policy regime affects the size of the inflation bias. We also show that … commitment to an optimal monetary policy not only corrects the inflation bias but also increases the persistence of output …

Persistent link: https://www.econbiz.de/10008774227

Financial shocks and optimal monetary policy rules

Verona, Fabio; Martins, Manuel M. F.; Drumond, Inês - Suomen Pankki - 2014

We assess the performance of optimal Taylor-type interest rate rules, with and without reaction to financial variables, in stabilizing the macroeconomy following financial shocks. We use a DSGE model that comprises both a loan and a bond market, which best suits the contemporary structure of the...

Persistent link: https://www.econbiz.de/10010945110

Limited asset market participation: does it really matter for monetary policy?

Ascari, Guido; Colciago, Andrea; Rossi, Lorenza - Suomen Pankki - 2011

We study the design of monetary policy in an economy characterized by staggered wage and price contracts together with limited asset market participation (LAMP). Contrary to previous results, we find that once nominal wage stickiness, an incontrovertible empirical fact, is considered: i) the...

Persistent link: https://www.econbiz.de/10009643486