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Federal Reserve Policy viewed through a Money Supply Lens

Chowdhury, Ibrahim; Schabert, Andreas - Schweizerische Nationalbank (SNB) - 2007

roperties are shown to be consistent with a welfare maximizing policy, and to ensure equilibrium determinacy. Viewed through the …

Persistent link: https://www.econbiz.de/10005091304

Grundzuege der Neuen Keynesianischen Makrooekonomik

Reither, Franco - Fächergruppe Volkswirtschaftslehre, Helmut Schmidt … - 2003

Die Neue Keynesianische Makrooekonomik bietet ein alternatives Paradigma zum herkoemmlichen IS-LM-Modell. Ihre Grundzuege werden anhand einer sehr einfachen Version vorgestellt. Die dynamischen Implikationen der Methodik rationaler Erwartungen werden erlaeutert. Es zeigen sich Grenzen fuer die...

Persistent link: https://www.econbiz.de/10005091379

Does It Matter (for Equilibrium Determinacy) What Price Index the Central Bank Targets?

Ghironi, Fabio; Carlstrom, Charles T.; Fuerst, Timothy S. - Department of Economics, Boston College - 2002

What inflation rate should the central bank target? We address determinacy issues related to this question in a two … to price movements in this sector, then this policy rule will ensure determinacy across all sectors. The results of this … paper have at least two implications. First, the equilibrium-determinacy criterion does not imply a preference to any …

Persistent link: https://www.econbiz.de/10005102663

Learning Stability for Monetary Policy Rules in a Two-Country Model

Wang, Q. - Faculty of Economics, University of Cambridge - 2006

countries is crucial for the determinacy and learning stability of the economy in the open economy case, even without the …

Persistent link: https://www.econbiz.de/10005489321

Robust Learning Stability with Operational Monetary Policy Rules

Evans, George W.; Honkapohja, Seppo - C.E.P.R. Discussion Papers - 2008

We consider "robust stability" of a rational expectations equilibrium, which we define as stability under discounted (constant gain) least-squares learning, for a range of gain parameters. We find that for operational forms of policy rules, i.e. rules that do not depend on contemporaneous values...

Persistent link: https://www.econbiz.de/10005498187

Expectations, learning and monetary policy: an overview of recent research

Evans, George W; Honkapohja, Seppo - Suomen Pankki - 2007

Expectations about the future are central for determination of current macroeconomic outcomes and the formulation of monetary policy. Recent literature has explored ways for supplementing the benchmark of rational expectations with explicit models of expectations formation that rely on...

Persistent link: https://www.econbiz.de/10005419689

Friedman's money supply rule vs optimal interest rate policy

Evans, George W.; Honkapohja, Seppo - Suomen Pankki - 2003

respect to determinacy, stability under learning and optimality. We first review the recent literature. Open-loop interest … determinacy and stability under learning, and implements optimal policy. We then show that Friedman’s rule also can generate …

Persistent link: https://www.econbiz.de/10005423681

Friedman's Money Supply Rule versus Optimal Interest Rate Policy

Evans, George W.; Honkapohja, Seppo - Department of Economics, University of Oregon - 2003

respect to determinacy, stability under learning and optimality. First we review the recent literature: open-loop interest … determinacy and stability under learning, and implements optimal policy. We show that Friedman's rule also can generate equilibria …

Persistent link: https://www.econbiz.de/10005593766

Adaptive learning and monetary policy design

Evans, George W.; Honkapohja, Seppo - Suomen Pankki - 2002

We review the recent work on interest rate setting, which emphasizes the desirability of designing policy to ensure stability under private agent learning. Appropriately designed expectations based rules can yield optimal rational expectations equilibria that are both determinate and stable...

Persistent link: https://www.econbiz.de/10005648862

Robust Taylor rules in an open economy with heterogeneous expectations and least squares learning

Bask, Mikael; Selander, Carina - Suomen Pankki - 2007

The aim of this paper is threefold: (i) to investigate if there is a unique rational expectations equilibrium (REE) in the small open economy in Galí and Monacelli (2005) that is augmented with technical trading in the foreign exchange market; (ii) to investigate if the unique REE is adaptively...

Persistent link: https://www.econbiz.de/10005648866