Showing 1 - 10 of 58
This paper studies an advantage of commitment over discretion when a central bankobserves only noisy measures of current inflation and output, in the context of an optimizingmodel with nominal-price stickiness. Under a commitment regime, if current policy turns outto be too expansionary...
Persistent link: https://www.econbiz.de/10005870372
The paper evaluates the performance of three popular monetary policy rules when the central bank is learning aboutthe parameter values of a simple New Keynesian model. The three policies are: (1) the optimal non-inertial rule; (2)the optimal history-dependent rule; (3) the optimal price-level...
Persistent link: https://www.econbiz.de/10005870371
This paper considers the determination of aggregate price level under dispersed information.A Central Bank sets policy in response to its noisy measure of the price level, andeach agent makes its decisions by observing a subset of data. Information revealed to theagents and the bank is...
Persistent link: https://www.econbiz.de/10005870374
Wirkung besitzt. Des Weiteren findet diese Studie anhand einer Simulationsanalyse, dass eine kontraktive Geldpolitik unter … implizieren somit, dass eine gemeinsame Geldpolitik - wie zum Beispiel innerhalb der EWU - aufgrund heterogener …
Persistent link: https://www.econbiz.de/10005854268
The objective of this paper is to analyze the effects of alternative monetary rules on realexchange rate persistence. Using a two-country stochastic dynamic general equilibrium withnominal price stickiness and local currency pricing, we will show how the persistence ofpurchasing power parity...
Persistent link: https://www.econbiz.de/10005871072
This study analyzes a two-country dynamic general equilibrium model with nominal rigidities,monopolistic competition and producer currency pricing. A quadratic approximation to the utility ofthe consumers is derived and assumed as the policy objective function of the policymakers.It is shown...
Persistent link: https://www.econbiz.de/10005871073
The fiscal theory of the price level says that the price level can be made determinate if thegovernment uses fiscal policies such that government liabilities explode unless the price inthe first period is at the “right” level. The policy implications are disturbing, as they callfor rather...
Persistent link: https://www.econbiz.de/10009138463
We study the effects of model uncertainty in a simple New Keynesian model using robustcontrol techniques. Due to the simple model structure, we are able to find closed-formsolutions for the robust control problem, analyzing both instrument rules and targetingrules under different timing...
Persistent link: https://www.econbiz.de/10009138471
We propose a theory of exchange rate determination under interestrate rules in a two-country model. We first show that simpleinterest rate feedback rules can determine a unique and stableequilibrium without any explicit reaction to the nominal exchangerate.We characterize how the behavior of the...
Persistent link: https://www.econbiz.de/10009138475
[...]In my view, a goal of price stability requires thatmonetary policy be oriented beyond the horizon of itsimmediate impact on inflation and the economy. Thisimmediate horizon is on the order of two to three years.This orientation properly puts the focus of a forwardlookingpolicy on the time...
Persistent link: https://www.econbiz.de/10005870224