Monetary Policy with Opinionated Markets
نویسندگان
چکیده
We build a model in which the Fed and market disagree about future aggregate demand. The anticipates monetary policy “mistakes,” affect current demand induce to partially accommodate market’s view. expects implement its view gradually. Announcements that reveal an unexpected change Fed’s belief provide microfoundation for shocks. Tantrum shocks arise when misinterprets overreacts announcement. Uncertainty tantrums motivates further gradualism communication. Finally, disagreements expected inflation trade-off similar “ cost-push” (JEL D83, E12, E31, E43, E44, E52, E58)
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ژورنال
عنوان ژورنال: The American Economic Review
سال: 2022
ISSN: ['2640-205X', '2640-2068']
DOI: https://doi.org/10.1257/aer.20210271