Welfare analysis and optimal monetary policy
Monetary policy and Tobin taxes: a welfare analysis
... curve. Optimal policy maximizes a quadratic approximation of the household’s utility, a feature of recent papers on optimal monetary policy in small open economies (see, for example, ...
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Macroprudential and monetary policy rules: a welfare analysis
... 2.5 A Ma cr op ru de ntia l Ru le f or t he LT V In standard models, the LTV ratio is a fixed parameter which is not affected by economic conditions. However, we can think of regulations of LTV ratios as a way to ...
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Macroprudential and monetary policy rules: a welfare analysis
... macroprudential policy to the monetary policy and its supportive role as a built- in ...the monetary policy can be supported by countercyclical prudential ...and monetary ...
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Optimal simple monetary policy rules and welfare in a DSGE Model for Hungary
... of monetary policy is the nominal interest rate, ...instrument, monetary policy has influence on the economy through two ...appropriate monetary policy response, the central bank ...
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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 ...
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On the Welfare Costs of Monetary Policy
... of monetary policy changes on the welfare in the ...the welfare costs respond symmetrically to a rise and a decline in trend inflation, trend growth and the level of volatility of output, ...
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Welfare-Based Optimal Monetary Policy in a Two-Sector Small Open Economy
... the monetary policy design ...for welfare, but so does the devi- ation of the relative price from its target ...in welfare gains from exchange rate ...additional welfare effects that ...
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(7) Monetary Policy Analysis with Optimal Simple Rules.pdf
... 7 Monetary Policy Design in the NK Frame- work This section follows the derivations in Gali chapter ...simple monetary policy rule concerning model (1): namely, an interest rate ...on ...
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Fear of Floating: An optimal discretionary monetary policy analysis
... of optimal monetary and exchange rate policy with and without commitment in an economy with balance sheet effects and Calvo-type wage ...higher welfare than a policy of strictly fixed ...
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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 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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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. Moreover, the ...
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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 ...the welfare impact of ...
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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 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
... 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 ...
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Learning and optimal monetary policy
... on monetary policy assuming the central bank has full information, 1 we consider an economy in which both private agents and the central bank must ...its policy objectives but needing to set ...
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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
... is optimal since movements in prices represent deadweight costs to the ...the optimal policy no longer fully sta- bilizes ...the optimal policy literature, we show that simple rules can ...
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