New Keynesian Optimal-policy Models: An Empirical Assessment
نویسندگان
چکیده
منابع مشابه
New Keynesian Optimal-Policy Models: An Empirical Assessment
This paper estimates two optimization-based sticky-price New Keynesian models and assesses how well they describe US output, inflation, and interest rate dynamics. We consider models in which either internal habit formation or external habit formation influence consumption behavior, and in which Calvopricing and inflation indexation generate price and inflation inertia. Subject to constraints d...
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We consider optimal monetary policy in New Keynesian models with inertia. First order conditions, which we call the MJBalternative, are found to improve upon the timeless perspective. The MJB-alternative is shown to be the best possible in the sense that it minimizes policymakers’ unconditional expected loss, and further, it is numerically found to offer significant improvement over the timeles...
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As Paul Samuelson once put it: Adam Smith is dead and Keynes is dead; well— and Mises is dead, too. But Keynesianism is alive and well and back with a vengeance. Built on solid neoclassical foundations, this “new” Keynesianism, which features the effects of nominal rigidities in the presence of economic shocks and the existence of involuntary unemployment, represents the theoretical core of mod...
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The alternative, based on Cavalcanti-Wallace 1999, is one way to bridge the gap between two extreme models: an economy with no monitoring (and, therefore, no credit) and an economy with perfect monitoring (and, therefore, no role for money). Here, using an outside-money version of the model, optima for two examples, drawn from earlier work by Deviatov and Wallace, are described. Although the ex...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2004
ISSN: 1556-5068
DOI: 10.2139/ssrn.550441