Solving for optimal simple rules in rational expectations models
Article Abstract:
Algorithms that solve for optimal simple monetary policy rules in rational expectations models are presented. A comparative study of the model with precommitment and discretion showed that time-inconsistency did not affect economic outcomes in the Rudebusch model, but was important in Fuhrer-Moore model.
Publication Name: Journal of Economic Dynamics & Control
Subject: Economics
ISSN: 0165-1889
Year: 2004
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Ruling out pareto dominated monetary equilibria
Article Abstract:
The composition of the government's portfolio is determined by its monetary policy. This paper shows monetary policy is dependent on money supply rules adopted either through open market operations or nominal transfers.
Publication Name: Journal of Economic Dynamics & Control
Subject: Economics
ISSN: 0165-1889
Year: 2001
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Escapist policy rules
Article Abstract:
Macroeconomic systems in which the monetary authority employs a Taylor-type policy rule are discussed. The situations in which the self-confirming equilibrium is unique and learnable are examined.
Publication Name: Journal of Economic Dynamics & Control
Subject: Economics
ISSN: 0165-1889
Year: 2005
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