Robustly optimal monetary policy with near-rational expectations
- The paper considers optimal monetary stabilization policy in a forward-looking model, when the central bank recognizes that private-sector expectations need not be precisely model-consistent, and wishes to choose a policy that will be as good as possible in the case of any beliefs that are close enough to model-consistency. It is found that commitment continues to be important for optimal policy, that the optimal long-run inflation target is unaffected by the degree of potential distortion of beliefs, and that optimal policy is even more history-dependent than if rational expectations are assumed. JEL Classification: E52, E58, E42
Verfasserangaben: | Michael Woodford |
---|---|
URN: | urn:nbn:de:hebis:30-38229 |
Titel des übergeordneten Werkes (Deutsch): | Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2007,12 |
Schriftenreihe (Bandnummer): | CFS working paper series (2007, 12) |
Dokumentart: | Arbeitspapier |
Sprache: | Englisch |
Jahr der Fertigstellung: | 2005 |
Jahr der Erstveröffentlichung: | 2005 |
Veröffentlichende Institution: | Universitätsbibliothek Johann Christian Senckenberg |
Datum der Freischaltung: | 23.02.2007 |
Freies Schlagwort / Tag: | Commitment; History-Dependent Policy; Optimal Monetary Policy |
GND-Schlagwort: | Geldpolitik |
Ausgabe / Heft: | December 13, 2005 |
Seitenzahl: | 50 |
HeBIS-PPN: | 190113529 |
Institute: | Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) |
DDC-Klassifikation: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
Lizenz (Deutsch): | Deutsches Urheberrecht |