optimal monetary policy response
Optimal Monetary Policy Response to Distortionary Tax Changes
... rate response to rising ...necessarily optimal from a welfare-theoretic point of ...earlier, monetary policy should be chosen optimally based on a welfare criterion that is based on the ...
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The Optimal Monetary Policy Response to Exchange Rate Misalignments
... which monetary policy should respond to exchange rate ...for policy in the face of UIP ...derive optimal policy analytically before giving numerical examples of the optimal ...
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Optimal monetary policy
... dynamic response to the productivity shock under a constant money growth rule is similar to the responses suggested by ...optimal policy). Labor input must fall, since the small output ...
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Optimal Monetary Policy
... under optimal policy We now discuss the nature of the dynamic response of the macroeconomy under op- timal ...the monetary authority will face an initial incentive to stimulate ...an ...
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Is a National Monetary Policy Optimal?
... We begin by considering the period-by-period impulse response results for ten pe- riods (five years) in Tables 2 – 4. As can be seen, there is considerable heterogeneity of the responses across the cities. ...
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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 ...
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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 ...
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Inventories and Optimal Monetary Policy
... In response to a technology shock, output increases by more compared to the model without inventories, while consumption, which is first-order equivalent to sales, rises ...Ramsey optimal policy can ...
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Inventories and optimal monetary policy
... A key feature of the standard New Keynesian setup is that Ramsey-optimal policy completely stabilizes inflation. Price movements represent a dead- weight loss to the economy because of the existence of ...
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Inventories and Optimal Monetary Policy
... the optimal Ramsey ...of monetary policymakers, it provides a useful ...study optimal policy when the planner is constrained to implement simple ...the policy instrument, the nominal ...
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Optimal monetary policy and firm entry
... prices, policy should aim at bringing the markup on the price of leisure to the same ...rigidities, monetary policy can be used to mimick the e¤ect of a labour subsidy by manipulating the real wage ...
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The optimal degree of discretion in monetary policy
... the optimal policy has no ...best response is typically interior. The optimal policy then depends on ...the policy for our benchmark exam- ...
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Optimal Fiscal Policy in a Monetary Union
... fiscal policy is does not depend on the initial level of public ...fiscal policy commands the same response of public debt and taxes independently of the initial debt ...1 Monetary and fiscal ...
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The optimal degree of discretion in monetary policy
... the optimal policy has no ...best response is interior. For such a payoff function the optimal policy will typically depend on ...that optimal policy must have bounded ...
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Optimal Monetary Policy in an Interdependent World
... the optimal labor-consumption trade-off, the op- timal money supply response to aggregate productivity shocks adjusts real balances so that consumption and labor changes in the right ...in response ...
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The Optimal Degree of Discretion in Monetary Policy
... best response is always the highest feasible inflation rate ¯ ...the optimal policy has no ...best response is typically interior. The optimal policy then depends on ...the ...
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Nominal Frictions and Optimal Monetary Policy
... the response of real variables becomes significantly closer in both monetary ...Ramsey policy stimulated output, consumption and investment and leaves quasi-unchanged inflation and real ...
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Optimal Monetary Policy in a Liquidity Trap
... stabilization policy that trades off inflation stabilization and output-gap stabilization in terms that are often assumed to represent actual central-bank ...characterize optimal policy in such a ...
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News Shocks and Optimal Monetary Policy
... that monetary policy can tackle the two shocks separately is due to two crucial ...appropriate policy rule the monetary authority can then alter the way in which agents respond to private and ...
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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 ...the response of ...
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