optimal monetary policy
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 ...
51
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 ...
36
Robustly Optimal Monetary Policy
... analysed optimal monetary policy in a model of time-dependent pricing that imposes no restrictions on how the probability of price adjustment depends on the number of periods a price has remained ...
74
Learning and optimal monetary policy
... how monetary policy would be implemented if all agents had full information and formed expectations ...the optimal monetary policy, when the central bank and private agents are both ...
36
Inventories and Optimal Monetary Policy
... of monetary policymakers, it provides a useful ...study optimal policy when the planner is constrained to implement simple ...the policy instrument, the nominal interest rate, respond to ...
33
Inventories and Optimal Monetary Policy
... of optimal monetary ...Ramsey optimal monetary policy and a monetary policy that maximizes consumer welfare over a set of simple interest rate feedback ...
35
Unconditionally Optimal Monetary Policy
... a monetary policy, under rational expectations, which is optimal "on ...that optimal monetary policy optimize the unconditional expectation of the policymaker’s objective ...
20
Optimal monetary policy and firm entry
... consider optimal monetary policy in an economy with sticky prices where …scal policy is restricted to lump sum ...the optimal allocation under nominal rigidities and the ‡exible ...
37
Communication, Learning and Optimal Monetary Policy.
... analyze optimal monetary policy under discretion, with and without disclosure of infor- ...as monetary policy aims at other goals besides price ...
148
Transmission Lags and Optimal Monetary Policy
... this policy problem, the question this paper focuses on is how long and variable transmission lags a¤ect the design of the optimal monetary ...from policy action to ...of policy action ...
24
Inflation risk and optimal monetary policy
... the policy implications of this tradeoff between output and inflation variability requires using a welfare metric to evaluate the alternative policy ...that optimal policy in our particular ...
30
Strategic Deviations in Optimal Monetary Policy
... the optimal monetary policy ...which monetary pol- icy deviations occur ...a policy deviation, this pro- vides the central bank with an incentive to implement past policy com- ...
58
Optimal monetary policy in open economies
... the optimal policy under LCP, we show impulse-responses to di¤erent shocks for the general case with home bias in consumption and > ...of optimal stabilization of markup shocks as in Figure ...the ...
91
Optimal Monetary Policy with Informational Frictions
... on optimal monetary policy starts with two key lessons: (i) the efficiency of flexible-price allocations in the baseline New-Keynesian model, and (ii) and the consequent op- timality of policies that ...
46
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 ...
58
Openness and Optimal Monetary Policy
... the optimal volatility of the exchange rate, above and beyond the size of trade ...the policy trade-off and on the role played by the exchange rate in correcting for price ...Ramsey policy ...
65
Openness and optimal monetary policy
... markets, optimal policy results in near-complete stabilization of the non-tradable goods ...Ramsey policy (approximately) equates the marginal rate of transformation across domestically produced ...
52
Optimal Monetary Policy Inertia
... an optimal commitment on the part of the central bank can often lead to a better outcome than is attained through optimization under ...be optimal for a central bank is provided by a suggestion of ...
109
Inventories and optimal monetary policy
... etary policy deviates from full inflation stabilization in our model with inven- ...is optimal since movements in prices represent deadweight costs to the ...the optimal policy no longer fully ...
26
Credit Frictions and Optimal Monetary Policy
... to monetary policy will have to pay attention to the balance sheets of financial ...that policy should respond to variations in the growth rate of monetary or credit aggregates, rather than — ...
82