We investigate whether increased independence affects central bank behavior when monetary policy is already in an … inflation have thus complemented greater autonomy in influencing the Bank's policy feedback …

There is by now a large consensus in modern monetary policy. This consensus has been built upon a dynamic general … equilibrium model of optimal monetary policy with sticky prices a la Calvo and forward looking behavior. In this paper we extend … regarding stability and the efficiency of monetary policy in the standard model. We should emphasize the following main results …

policy transmission. Our model is based on the existence of a bank{client relationship which provides a rationale for … in the light of expectations about the future course of monetary policy, implying that the adjustment of loan rates to a … monetary policy shock is sticky. This is in contrast to Ravenna and Walsh (2006) who focus primarily on banks operating under …

This paper reviews 22 years of UK monetary policy (1971-1992) using official record from the Quarterly Bulletin of the … Bank of England. A definition of policy shocks, which allows for the exclusion of cases of interest rate increases, which … were unrelated to the monetary policy objectives, is used. The empirical analysis shows that output displays the usual hump …

This paper evaluates optimal monetary policy rules within the context of a dynamic stochastic general equilibrium model …