Optimal discretionary monetary policy
Fear of Floating: An optimal discretionary monetary policy analysis
... an optimal discretionary monetary ...sectors. Monetary authorities need not view all sectors equally, and may have a relatively greater preference for output stability in some of the ...a ...
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Optimal discretionary monetary policy in the open economy: Choosing between CPI and domestic inflation as target variables
... The case for CPI inflation targeting seems to be overwhelming in light of current practice. Indeed it appears to be so strong that there is no room for any alternative inflation targeting strategy. Yet in open economies, ...
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Discretionary Fiscal Policy and Optimal Monetary Policy in a Currency Area
... fiscal policy, meaning expenditure set at its efficient level at all ...fiscal policy always gen- erates welfare gains, the magnitude depending on the stochastic properties of the ...fiscal policy ...
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Discretionary monetary policy in the Calvo model
... period’s optimal price, there is a unique private- sector ...policymaker’s policy problem is influenced by the inherited relative price distortion, which increases if adjusting firms in the present set a ...
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Discretionary policy, multiple equilibria, and monetary instruments
... tionary policy leads to suboptimal outcomes, while an optimal commitment policy, which implements a superior allocation, is not time consistent (see Kydland and Prescott, ...3 Discretionary ...
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Discretionary Fiscal Policy and the European Monetary Union
... Modeling policy actions in a monetary union can be done in a number of ...models monetary and fiscal interaction in a monetary union us- ing sophisticated micro-founded new-Keynesian general ...
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Discretionary policy in a monetary union with sovereign debt
... the optimal response of the European Central Bank’s (ECB) monetary policy to a positive shock to government debt in its member countries? This will depend on how national …scal policy responds ...
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Inflation dynamics under optimal discretionary fiscal and monetary policies
... Finally, we briefly examine the role of imperfect competition. A comparison of the two panels of Table 1 reveals that, unlike in an environment of full commitment, imperfect competition has no qualitative effect on ...
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Optimal Monetary Stabilization Policy
... the optimal equilib- rium dynamics is that they do not correspond to the equilibrium outcome in the case of an optimizing central bank that chooses its policy each period without making any commitments ...
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Optimal Monetary Stabilization Policy
... the optimal equilib- rium dynamics is that they do not correspond to the equilibrium outcome in the case of an optimizing central bank that chooses its policy each period without making any commitments ...
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Robustly Optimal Monetary Policy
... However, the most striking feature of the intermediate target which implements the discretionary equi- librium is its complete accommodation of intrinsic inflation persistence. As was discussed in section 4.2, ...
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Learning and optimal monetary policy
... the optimal discretionary policy when expectations are ...its policy implies, then policy loss would be ...and discretionary policymaking, this cannot be an equilibrium because ...
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Optimal discretionary policy and uncertainty about inflation persistence
... how monetary policy should be set optimally when the struc- ture of the economy exhibits inflation persistence is important for policy ...for monetary policy (see Angeloni et ...that ...
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Optimal Time Consistent Monetary Policy
... timelessly optimal policy; that is, the policy that would have been decided upon for the current period had such a binding decision been taken in…nitely far in the ...timelessly optimal rule ...
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Optimal Structure of Monetary Policy Committees
... balance monetary policy by stabilizing expected and current ...the optimal delegation of monetary policy to single policy ...the discretionary policy ...
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How optimal is US monetary policy?
... mimic optimal policy, see, for example, Schmitt-Grohe and Uribe ...additional policy shock in the interest rate rule relative to the cases of optimal policy, we are further supporting ...
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Optimal monetary policy
... 6.4 Credit costs and the demand for money: The behavior of the demand for money in our model depends on the distri- bution of credit costs. We assume that distribution is a modified member of the beta family; the ...
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Optimal Monetary Policy
... ABSTRACT Optimal monetary policy maximizes the welfare of a representative agent, given frictions in the economic ...find optimal monetary policy is governed by two familiar ...
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Non-discretionary monetary policy: The answer for transition economies?
... Next, our analysis will focus on determining which type of monetary institution is best for achieving low and stable inflation rates. Hanke and Schuler (1992, 1994) argue that the nations that are trying to become ...
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Optimal monetary policy and default
... demand, monetary policy can affect incentives to default; determining optimal monetary policy can then be thought of as equivalent to choosing the optimal default ...different ...
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