Optimal Monetary Policy Responses to the Financial Crisis in the Context of a Macroeconomic Agent-Based Model with Dynamic Expectations

Konferenzbeitrag

Within the context of an agent-based macroeconomic model with dynamic bounded-rational expectations, the most important transmission links between the real sphere of the European economy and the US financial markets crises are simulated: (a) the devaluation of financial assets, (b) global interest rate changes, (c) the drop in US demand on the world markets, and (d) loss of confidence in banks, companies, and markets. Depending on the specification of the expectation formation process, optimal monetary policy reactions change significantly. We conclude, that expectations matter, even more for calculating optimal monetary policies that for simply simulating the model.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Monetary Policy Under Uncertainty ; No. C16-V2

Classification and Topics

• Classification: Wirtschaft ; Monetary Policy, Central Banking, and the Supply of Money and Credit: General ; Fiscal Policy ; Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
• Subject: Agent-based economics ; Mulit-agent models ; monetary policy ; fiscal policy ; expectation formation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Haber, Gottfried
• Event: Veröffentlichung
• (who): Verein für Socialpolitik
• (where): Frankfurt a. M.
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/37485
• Last update: 10.03.2025, 11:45 AM CET