Arbeitspapier
Optimal policy under commitment and price level stationarity
This paper proposes a simple analytical method to determine the stationarity of an unnormalized variable from the solution to a normalized model i.e. a model whose variables must be expressed in relative terms or must be differenced for a solution to exist. The paper then applies the methodto answer a question of interest to policy-makers: does optimal policy under commitment lead to stationarity in the price level? Unlike Gaspar, Smets, and Vestin (2007), the paper finds that optimal policy under commitment does not lead to price level stationarity in the Smets and Wouters (2003) model.
- Language
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Englisch
- Bibliographic citation
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Series: Bank of Canada Working Paper ; No. 2009-8
- Classification
-
Wirtschaft
Monetary Policy
Central Banks and Their Policies
- Subject
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Monetary policy framework
Geldpolitik
Preisniveaustabilität
Theorie
- Event
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Geistige Schöpfung
- (who)
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Cateau, Gino
- Event
-
Veröffentlichung
- (who)
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Bank of Canada
- (where)
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Ottawa
- (when)
-
2009
- DOI
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doi:10.34989/swp-2009-8
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Cateau, Gino
- Bank of Canada
Time of origin
- 2009
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