Arbeitspapier
Monetary policy with uncertain parameters
In a simple dynamic macroeconomic model, it is shown that uncertainty about structural parameters does not necessarily lead to more cautious monetary policy, refining the accepted wisdom concerning the effects of parameter uncertainty on optimal policy. In particular, when there is uncertainty about the persistence of inflation, it is optimal for the central bank to respond more aggressively to shocks than if the parameter were known with certainty, since the central bank wants to avoid bad outcomes in the future. Uncertainty about other parameters, in contrast, acts to dampen the policy response.
- Sprache
-
Englisch
- Erschienen in
-
Series: Sveriges Riksbank Working Paper Series ; No. 83
- Klassifikation
-
Wirtschaft
Interest Rates: Determination, Term Structure, and Effects
Monetary Policy
- Thema
-
Optimal monetary policy
parameter uncertainty
Brainard conservatism principle
interest rate smoothing
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Söderström, Ulf
- Ereignis
-
Veröffentlichung
- (wer)
-
Sveriges Riksbank
- (wo)
-
Stockholm
- (wann)
-
1999
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 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
- Söderström, Ulf
- Sveriges Riksbank
Entstanden
- 1999
Ähnliche Objekte (12)
Evaluating monetary policy
Uncertainty about Length of the Monetary Policy Transmission Lag: Implications for Monetary Policy
Monetary policy when credibility matters
Monetary Policy Analysis in Backward-Looking Models
Inflation targeting as a monetary policy rule
Output gaps and robust monetary policy rules
International experiences with different monetary policy regimes
Monetary Policy with Incomplete Exchange Rate Pass-Through
Indicator Accuracy and Monetary Policy: Is Ignorance Bliss?
Predicting monetary policy using federal funds future prices
Bank Loans and the Transmission Mechanism of Monetary Policy
Uncertain pension income and household saving
Evaluating monetary policy
Uncertainty about Length of the Monetary Policy Transmission Lag: Implications for Monetary Policy
Monetary policy when credibility matters
Monetary Policy Analysis in Backward-Looking Models
Inflation targeting as a monetary policy rule
Output gaps and robust monetary policy rules
International experiences with different monetary policy regimes
Monetary Policy with Incomplete Exchange Rate Pass-Through
Indicator Accuracy and Monetary Policy: Is Ignorance Bliss?
Predicting monetary policy using federal funds future prices
Bank Loans and the Transmission Mechanism of Monetary Policy
Uncertain pension income and household saving
Evaluating monetary policy
Uncertainty about Length of the Monetary Policy Transmission Lag: Implications for Monetary Policy
Monetary policy when credibility matters
Monetary Policy Analysis in Backward-Looking Models
Inflation targeting as a monetary policy rule
Output gaps and robust monetary policy rules
International experiences with different monetary policy regimes
Monetary Policy with Incomplete Exchange Rate Pass-Through
Indicator Accuracy and Monetary Policy: Is Ignorance Bliss?
Predicting monetary policy using federal funds future prices
Bank Loans and the Transmission Mechanism of Monetary Policy