crucial to reproduce international business cycle statistics. We also evaluate the welfare implications of various monetary …

crucial to reproduce international business cycle statistics. We also evaluate the welfare implications of various monetary …

In this paper, we analyze the implications of macroprudential and monetary policies for business cycles, welfare, and … the stability of the system. In both cases, this interaction is welfare improving for the society, especially in the case … the saver’s welfare loss àla Kaldor–Hicks to achieve a Pareto-superior outcome. …

different issue: the relationship between inflation and welfare. The literature is surveyed and a model is developed. A key … conclusion is that an increase in inflation targets gives rise to additional welfare costs, even after the extra room to maneuver … additional welfare costs of raising inflation targets from 2 to 4 percent are estimated at about 0.3 percent of annual real …

The paper examines the welfare implications of price targeting from the perspective of when central bank has … was observed that the principle of Pareto optimality holds while there will be welfare loss and social bliss denied in … the goal of ensuring maximum welfare and social justice in the society. …

both effects, we find that the welfare-maximizing monetary policy rule is characterized with a steady-state inflation rate … flawed: they lead to too high long-run inflation and too much policy activism, compared to rules that maximize welfare. …

the United States. Thirdly, we find that the average welfare cost of inflation is much smaller compared to a complete …

for global welfare depend critically on whether monetary policy can effectively respond to oil shocks. In an environment …

(1995) and Lane (1997) affects the impact of a monetary surprise on welfare. In this model with endogenous habit formation … expansion decreases welfare. …

and other aggregates, and derive a second order approximation to welfare. Numerical calibrations show broad CPI targeting … to be welfare-superior to alternative policy rules once the variance of food price shocks is sufficiently large as in …