Arbeitspapier
Do heterogeneous expectations constitute a challenge for policy interaction?
Yes, indeed; at least for macroeconomic policy interaction. We examine a Neo-Classical economy and provide the conditions for policy arrangements to successfully stabilize the economy when agents have either rational or adaptive expectations. For a contemporaneous-data monetary policy rule, the monetarist solution is unique and stationary under a passive fiscal/active monetary policy regime if monetary policy appropriately incorporates expectational heterogeneity. In contrast, the active fiscal/passive monetary policy regime's fiscalist solution is prone to explosiveness due to empirically plausible expectational heterogeneity. Nevertheless, this can be a well-defined, rather orthodox equilibrium. For operational monetary policy rules, only the results for the fiscalist solution prevail. Moreover, our results are plausible from an adaptive learning viewpoint.
- Sprache
-
Englisch
- Erschienen in
-
Series: Diskussionsbeiträge ; No. 2016/14
- Klassifikation
-
Wirtschaft
Price Level; Inflation; Deflation
Expectations; Speculations
Monetary Policy
Fiscal Policy
- Thema
-
inflation
heterogeneous expectations
fiscal and monetary policy interaction
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Gasteiger, Emanuel
- Ereignis
-
Veröffentlichung
- (wer)
-
Freie Universität Berlin, Fachbereich Wirtschaftswissenschaft
- (wo)
-
Berlin
- (wann)
-
2016
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Gasteiger, Emanuel
- Freie Universität Berlin, Fachbereich Wirtschaftswissenschaft
Entstanden
- 2016
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