Optimal Interest Rate Policy
Optimal Interest Rate Policy in a Small Open Economy
... the optimal monetary and exchange rate policy for a small stochastic open economy with imperfect competition and short run price ...The optimal monetary policy has an exact closed-form ...
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Consumer Search, Incomplete Exchange Rate Pass-Through and Optimal Interest Rate Policy
... monetary policy, consider a standard, two-country (home and foreign), two-good economy, with country-specific real shocks to technology or preferences, and a cash-in-advance restriction on household ...the ...
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Optimal exchange rate policy in a low interest rate environment
... studies optimal exchange rate policy in a low interest rate envi- ronment, a phenomenon that has become prevalent, especially in several Asian economies and Japan after July ...is ...
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Optimal exchange rate policy in a low interest rate environment
... studies optimal exchange rate policy in a low interest rate envi- ronment, a phenomenon that has become prevalent, especially in several Asian economies and Japan after July ...is ...
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On the Equivalence of Money Growth and Interest Rate Policy
... the policy in- struments is, however, not su¢cient for the derivation of equivalence ...an interest rate policy, implemented in a non-backward looking way, leads to a fundamental solution, ...
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Optimal and Simple Monetary Policy Rules with Zero Floor on the Nominal Interest Rate
... the optimal commitment policy, as well as under the optimal discretionary ...a rate of inflation of 2 percent, the frequency of hitting the zero floor would decrease to around 12 percent of the ...
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The Zero Interest Rate Policy
... derive optimal tar- geting rules in a purely forward-looking ...of optimal monetary policy in a low interest rate environment is that the ZIP should be continued after the improvement ...
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SIMPLE GUIDELINES FOR INTEREST RATE POLICY*
... monetary policy are decided opti- mally, such as Correia, Nicolini and Teles (2002), the interest rate policy is the Friedman rule, of a zero nominal interest ...of optimal ...
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Interest rate versus money supply instruments: on the implementation of Markov-perfect optimal monetary policy
... the interest rate ...the interest rate rule reaction function is sufficiently steep to prevent the occurrence of multiple intersections of the LHS and RHS ...the interest rate ...
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Can Money Matter for Interest Rate Policy?
... of interest rate ...the optimal plan requires the central bank to ght changes in ination only in a moderate way, to avoid exacerbating the distortions due to the transactions ...the optimal ...
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Elastic Money, Inflation, and Interest Rate Policy
... monetary policy is typically modeled as direct control of the supply of fiat ...a policy is equivalent to one based on the setting of nominal interest ...use interest rates as their primary ...
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Optimal Monetary Policy in a Currency Union with Interest Rate Spreads
... under optimal policy, the central bank decreases the policy rate to mitigate the adverse e¤ects on in‡ation and the output gap that the increase in interest rate spread would ...
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Optimal Monetary Policy in a Channel System of Interest-Rate Control
... Monetary Policy: The Central Bank as an Army with only a Signal ...monetary policy should continue to be ...nominal interest rate, and this would continue to be possible, in particular through ...
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Optimal Interest-Rate Smoothing
... that optimal policy should be purely ...the optimal control of backward-looking systems of the kind considered in the engineering literature, and not to the control of a forward-system of the kind ...
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Persistent Habits, optimal Monetary Policy Inertia and Interest Rate Smoothing
... and interest rates to a positive cost-push disturbance (which is added exogenously to the NKPC) under a discretionary optimal policy for the canonical new Keynesian model as well as for two di¤erent ...
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Optimal and simple monetary policy rules with zero floor on the nominal interest rate
... natural interest rate has returned back to ...nominal rate are symmetric with respect to the midpoint of the simulation period because op- timal discretionary policy is independent of ...real ...
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The optimal inflation target and the natural rate of interest
... An alternative would consist in a change of monetary policy strategies, e.g., adopting variants of the price-level targeting strategy, as recently advocated by e.g. Williams (2016) or Bernanke et al. (2019). Our ...
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Estimated, Calibrated, and Optimal Interest Rate Rules
... Monetary policy is, however, slightly more effective under the RE assumption in that for a given rule the value of L for r is smaller in Part 4 than in Part 3 and yet the decreases in output and price variability ...
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The Optimal Inflation Target and the Natural Rate of Interest
... the policy fur- ther will lead to a deflation that magnifies the contractionary demand shocks responsible for driving the economy to the ZLB in the first ...
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Optimal Interest-Rate Rules: II. Applications
... monetary policy to restrain spending and/or price increases even before the anticipated real disturbances actually take ...a policy may well mean that the central bank does adjust its policy ...
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