Expectations and the Stability Problem for Optimal Monetary Policies.
A fundamentals based monetary policy rule, which would be the optimal monetary policy without commitment when private agents have perfectly rational expectations, is unstable if in fact these agents follow standard adaptive learning rules. This problem can be overcome if private expectations are obs...
| Publicado en: | Review of Economic Studies Vol. 70; no. 4; pp. 807 - 825 |
|---|---|
| Autores principales: | , |
| Formato: | Artículo |
| Publicado: |
Oxford University Press / UK
October 2003
|
| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=513150012&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 513150012 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00346527 REM jtl: Review of Economic Studies issn: 00346527 maglogo: N pubinfo: dt: October 2003 vid: 70 iid: 4 pid: 622 pub: Oxford University Press / UK artinfo: ui: 513150012 10.1111/1467-937X.00268 ppf: 807 ppct: 18 formats: tig: atl: Expectations and the Stability Problem for Optimal Monetary Policies. aug: au: Evans, George W. Honkapohja, Seppo su: Mathematical models of monetary policy Rational expectations (Economic theory) Economic equilibrium sug: subj: Mathematical models of monetary policy Rational expectations (Economic theory) Economic equilibrium ab: A fundamentals based monetary policy rule, which would be the optimal monetary policy without commitment when private agents have perfectly rational expectations, is unstable if in fact these agents follow standard adaptive learning rules. This problem can be overcome if private expectations are observed and suitably incorporated into the policy maker's optimal rule. These strong results extend to the case in which there is simultaneous learning by the policy maker and the private agents. Our findings show the importance of conditioning policy appropriately, not just on fundamentals, but also directly on observed household and firm expectations. Reprinted by permission of the publisher. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
|---|