Arbeitspapier
Optimal monetary policy under bounded rationality
Optimal monetary policy under discretion, commitment, and optimal simple rules regimes is analyzed through a behavioral New Keynesian model. Flexible price level targeting dominates under discretion; flexible inflation targeting dominates under commitment; and strict price level targeting dominates when using optimal simple rules. The optimality of a particular regime is found to be independent of bounded rationality and only regime 's stabilizing properties condition its hierarchy. For every targeting regime, the policymaker 's knowledge of agents' myopia is decisive in terms of policy reactions. Welfare evaluation of different targeting regimes reveals that bounded rationality is not necessarily associated with decreased welfare. Several forms of economic inattention can increase welfare.
- ISBN
-
978-952-323-222-8
- Sprache
-
Englisch
- Erschienen in
-
Series: Bank of Finland Research Discussion Papers ; No. 9/2018
- Klassifikation
-
Wirtschaft
Forecasting Models; Simulation Methods
Prices, Business Fluctuations, and Cycles: Forecasting and Simulation: Models and Applications
Monetary Policy
Microeconomic Behavior: Underlying Principles
Consumer Economics: Theory
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Benchimol, Jonathan
Bounader, Lahcen
- Ereignis
-
Veröffentlichung
- (wer)
-
Bank of Finland
- (wo)
-
Helsinki
- (wann)
-
2018
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Benchimol, Jonathan
- Bounader, Lahcen
- Bank of Finland
Entstanden
- 2018
Ähnliche Objekte (12)
Learning, inflation expectations and optimal monetary policy
Optimal monetary policy under heterogeneity in currency trade
Optimal fiscal policy of a monetary union member
Optimal monetary policy in a hybrid New Keynesian model with a cost channel
Extreme events and optimal monetary policy
Monetary policy in a bipolar international monetary system
Optimal discretionary monetary policy in the open economy: Choosing between CPI and domestic inflation as target variables
Monetary policy for smoothing real fluctuations? Assessing Finnish monetary autonomy
Monetary policy delegation, labour market structure and fiscal-monetary policy coordination
Neo-Fisherian monetary policy
The lending channel under optimal choice of monetary policy
Monetary policy in transition: Essays on monetary policy transmission mechanism in China
Learning, inflation expectations and optimal monetary policy
Optimal monetary policy under heterogeneity in currency trade
Optimal fiscal policy of a monetary union member
Optimal monetary policy in a hybrid New Keynesian model with a cost channel
Extreme events and optimal monetary policy
Monetary policy in a bipolar international monetary system
Optimal discretionary monetary policy in the open economy: Choosing between CPI and domestic inflation as target variables
Monetary policy for smoothing real fluctuations? Assessing Finnish monetary autonomy
Monetary policy delegation, labour market structure and fiscal-monetary policy coordination
Neo-Fisherian monetary policy
The lending channel under optimal choice of monetary policy
Monetary policy in transition: Essays on monetary policy transmission mechanism in China
Learning, inflation expectations and optimal monetary policy
Optimal monetary policy under heterogeneity in currency trade
Optimal fiscal policy of a monetary union member
Optimal monetary policy in a hybrid New Keynesian model with a cost channel
Extreme events and optimal monetary policy
Monetary policy in a bipolar international monetary system
Optimal discretionary monetary policy in the open economy: Choosing between CPI and domestic inflation as target variables
Monetary policy for smoothing real fluctuations? Assessing Finnish monetary autonomy
Monetary policy delegation, labour market structure and fiscal-monetary policy coordination
Neo-Fisherian monetary policy
The lending channel under optimal choice of monetary policy