Arbeitspapier
Welfare-based monetary policy rules in an estimated DSGE model of the US economy
We develop and estimate a stylized micro-founded model of the US economy. Next we compute the parameters of a simple interest rate policy rule that maximizes the unconditional mean of utility. We show that such a welfare-based rule lies close to the Taylor efficiency frontier. A counterfactual analysis assesses to what extent using such a rule as a guideline for monetary policy would have helped to avoid the inflationary swings of the 1970s and reduce the severity of boom and bust cycles. The paper also provides estimates of the welfare implications of business cycle variability and discusses their relevance.
- Sprache
-
Englisch
- Erschienen in
-
Series: ECB Working Paper ; No. 613
- Klassifikation
-
Wirtschaft
Model Construction and Estimation
Price Level; Inflation; Deflation
Monetary Policy
- Thema
-
competition
Markups
monetary policy
Taylor Rule
Geldpolitik
Taylor-Regel
Makroökonometrie
Wettbewerb
USA
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Juillard, Michel
Karam, Philippe
Laxton, Douglas
Pesenti, Paolo
- Ereignis
-
Veröffentlichung
- (wer)
-
European Central Bank (ECB)
- (wo)
-
Frankfurt a. M.
- (wann)
-
2006
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Juillard, Michel
- Karam, Philippe
- Laxton, Douglas
- Pesenti, Paolo
- European Central Bank (ECB)
Entstanden
- 2006
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