Arbeitspapier
Monetary Policy, Inflation Illusion and the Taylor Principle – An Experimental Study
We develop a simple experimental setting to evaluate the role of the Taylor principle, which holds that the nominal interest rate has to respond more than one-for-one to fluctuations in the inflation rate. In our setting, the average infl ation rate fluctuates around the inflation target if the computerized central bank obeys the Taylor principle. If the Taylor principle is violated, then the average infl ation rate persistently deviates from the target. We find that these deviations from the target are less pronounced, if inflation rates cannot be as readily observed as nominal interest rates. This result is consistent with the interpretation that subjects underestimate the influence of inflation on the real return to savings if the infl ation rate is only observed ex post.
- ISBN
-
978-3-86788-457-0
- Sprache
-
Englisch
- Erschienen in
-
Series: Ruhr Economic Papers ; No. 402
- Klassifikation
-
Wirtschaft
Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)
Monetary Policy
Design of Experiments: General
- Thema
-
Taylor principle
interest rate rule
inflation illusion
laboratory experiment
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Luhan, Wolfgang J.
Scharler, Johann
- Ereignis
-
Veröffentlichung
- (wer)
-
Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)
- (wo)
-
Essen
- (wann)
-
2013
- DOI
-
doi:10.4419/86788457
- Handle
- Letzte Aktualisierung
- 10.03.2025, 11:41 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Luhan, Wolfgang J.
- Scharler, Johann
- Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)
Entstanden
- 2013
Ähnliche Objekte (12)
Monetary Policy, Inflation Illusion and the Taylor Principle: An Experimental Study
Monetary Policy, Inflation Illusion and the Taylor Principle – An Experimental Study
Trend inflation, Taylor principle and indeterminacy
Trend Inflation, Taylor Principle and Indeterminacy
Trend Inflation, Taylor Principle and Indeterminacy
Trend Inflation, Taylor Principle and Indeterminacy
Monetary Policy Obeying the Taylor Principle Turns Prices Into Strategic Substitutes
Monetary policy obeying the Taylor principle turns prices into strategic substitutes
Monetary policy rule and taylor principle in Mongolia: GMM and DSGE approaches
Generalizing the Taylor principle: Comment
When the Taylor principle isinsufficient
Government Spending and the Taylor Principle
Monetary Policy, Inflation Illusion and the Taylor Principle: An Experimental Study
Monetary Policy, Inflation Illusion and the Taylor Principle – An Experimental Study
Trend inflation, Taylor principle and indeterminacy
Trend Inflation, Taylor Principle and Indeterminacy
Trend Inflation, Taylor Principle and Indeterminacy
Trend Inflation, Taylor Principle and Indeterminacy
Monetary Policy Obeying the Taylor Principle Turns Prices Into Strategic Substitutes
Monetary policy obeying the Taylor principle turns prices into strategic substitutes
Monetary policy rule and taylor principle in Mongolia: GMM and DSGE approaches
Generalizing the Taylor principle: Comment
When the Taylor principle isinsufficient
Government Spending and the Taylor Principle
Monetary Policy, Inflation Illusion and the Taylor Principle: An Experimental Study
Monetary Policy, Inflation Illusion and the Taylor Principle – An Experimental Study
Trend inflation, Taylor principle and indeterminacy
Trend Inflation, Taylor Principle and Indeterminacy
Trend Inflation, Taylor Principle and Indeterminacy
Trend Inflation, Taylor Principle and Indeterminacy
Monetary Policy Obeying the Taylor Principle Turns Prices Into Strategic Substitutes
Monetary policy obeying the Taylor principle turns prices into strategic substitutes
Monetary policy rule and taylor principle in Mongolia: GMM and DSGE approaches
Generalizing the Taylor principle: Comment
When the Taylor principle isinsufficient