Arbeitspapier
Open mouth operations
We examine the standard New Keynesian economy's Ramsey problem written in terms of instrument settings instead of allocations. Its standard formulation makes two instruments available: the path of current and future interest rates, and an "open mouth operation" which selects one of the many equilibria consistent with the chosen interest rates. Removing the open mouth operation by imposing a finite commitment horizon yields pathological policy advice that relies on the model's forward guidance puzzle.
- Language
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Englisch
- Bibliographic citation
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Series: Working Paper ; No. 2018-03
- Classification
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Wirtschaft
General Aggregative Models: Keynes; Keynesian; Post-Keynesian
Monetary Policy
- Subject
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Equilibrium Multiplicity
Monetary Policy
Geldpolitik
Neoklassische Synthese
Regelbindung versus Diskretion
Geldmengensteuerung
Theorie
- Event
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Geistige Schöpfung
- (who)
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Campbell, Jeffrey R.
Weber, Jacob P.
- Event
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Veröffentlichung
- (who)
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Federal Reserve Bank of Chicago
- (where)
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Chicago, IL
- (when)
-
2018
- Handle
- Last update
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10.03.2025, 3:44 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
- Campbell, Jeffrey R.
- Weber, Jacob P.
- Federal Reserve Bank of Chicago
Time of origin
- 2018
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The relationship between the federal funds rate and the Fed's federal funds rate target: is it open market or open mouth operations?
The collateral channel of open market operations
Superneutrality of Money under Open Market Operations
On the Relevance of Open Market Operations
Open market operations: beyond the new consensus
Superneutrality of money under open market operations
Equilibrium bidding in the Eurosystem's open market operations
Deterrence through word of mouth
Deterrence through word of mouth
Why do central banks make public announcements of open market operations?
More money for some: The redistributive effects of open market operations
Central bank communications before, during and after the crisis: From open-market operations to open-mouth policy
The relationship between the federal funds rate and the Fed's federal funds rate target: is it open market or open mouth operations?
The collateral channel of open market operations
Superneutrality of Money under Open Market Operations
On the Relevance of Open Market Operations
Open market operations: beyond the new consensus
Superneutrality of money under open market operations
Equilibrium bidding in the Eurosystem's open market operations
Deterrence through word of mouth
Deterrence through word of mouth
Why do central banks make public announcements of open market operations?