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Anticipated alternative policy-rate paths in policy simulations

Laséen, Stefan; Svensson, Lars E. O. - 2011

This paper specifies a new convenient algorithm to construct policy projections conditional on alternative anticipated policy-rate paths in linearized dynamic stochastic general equilibrium (DSGE) models, such as Ramses, the Riksbank's main DSGE model. Such projections with anticipated...

Persistent link: https://www.econbiz.de/10008696833

Inflation targeting as a monetary policy rule

Svensson, Lars E. O. - 1998 - This version: August 1998

The purpose of the paper is to survey and discuss in ation targeting in the context of monetary policy rules. The paper provides a general conceptual discussion of monetary policy rules, attempts to clarify the essential characteristics of in ation targeting, compares in ation targeting to other...

Persistent link: https://www.econbiz.de/10010128028

Open-economy inflation targeting

Svensson, Lars E. O. - 1998 - This version: April 1998

The paper extends previous analysis of closed-economy inflation targeting to a small open economy with forward-looking aggregate supply and demand with some microfoundations, and with stylized realistic lags in the different transmission channels for monetary policy. The paper compares targeting...

Persistent link: https://www.econbiz.de/10010128040

Transparency and credibility : monetary policy with unobservable goals

Fausty, Jon; Svensson, Lars E. O. - 1998 - This version: April 1998

We define and study transparency, credibility, and reputation in a model where the central bank's characteristics are unobservable to the private sector and are inferred from the policy outcome. A low-credibility bank optimally conducts a more expansionary policy than a high-credibility bank, in...

Persistent link: https://www.econbiz.de/10010128043

Policy rules for inflation targeting

Rudebuschy, Glenn D.; Svensson, Lars E. O. - 1998

Policy rules that are consistent with inflation targeting are examined in a small macro-econometric model of the US economy. We compare the properties and outcomes of explicit "instrument rules" as well as "targeting rules". The latter, which imply implicit instrument rules, may be closer to...

Persistent link: https://www.econbiz.de/10010128044

Price stability as a target for monetary policy : defining and maintaining price stability

Svensson, Lars E. O. - 1999 - This version: June 1999

This paper discusses how price stability can be defined and how price stability can be maintained in practice. Some lessons for the Eurosystem are also considered. With regard to defining price stability, the choice between price-level stability and low (including zero) inflation and the...

Persistent link: https://www.econbiz.de/10011583083

Incomplete exchange rate pass-through and simple monetary policy rules

Adolfson, Malin - 2002

-through. Implementing monetary policy through an exchange rate augmented policy rule does not improve social welfare compared to using an … optimized Taylor rule, irrespective of the degree of pass-through. A direct exchange rate response improves welfare only if the … a policy reaction to Consumer Price Index (CPI) inflation rather than to domestic inflation, is welfare enhancing. This …

Persistent link: https://www.econbiz.de/10011583794

Implications of exchange rate objectives under incomplete exchange rate pass-through

Adolfson, Malin - 2002

exchange rate pass-through. The results indicate that there are welfare gains from different types of monetary policy inertia …. The welfare improvements of exchange rate stabilization are, however, dependent on the degree of discretionary … stabilization bias. If the stabilization bias has been mitigated through a low weight on output stabilization social welfare can not …

Persistent link: https://www.econbiz.de/10011583801

Bayesian estimation of an open economy DSGE model with incomplete pass-through

Adolfson, Malin; Laséen, Stefan; Lindé, Jesper; … - 2005

In this paper we develop a dynamic stochastic general equilibrium (DSGE) model for an open economy, and estimate it on Euro area data using Bayesian estimation techniques. The model incorporates several open economy features, as well as a number of nominal and real frictions that have proven to...

Persistent link: https://www.econbiz.de/10011583872

Forecasting performance of an open economy Dynamic Stochastic General Equilibrium model

Adolfson, Malin; Lindé, Jesper; Villani, Mattias - 2006 - Revised

This paper analyzes the forecasting performance of an open economy DSGE model, estimated with Bayesian methods, for the Euro area during 1994Q1-2002Q4. We compare the DSGE model and a few variants of this model to various reduced form forecasting models such as vector autoregressions (VAR) and...

Persistent link: https://www.econbiz.de/10011584035