Optimal monetary policy with imperfect common knowledge
نویسندگان
چکیده
منابع مشابه
Optimal Monetary Policy with Imperfect Common Knowledge
We study optimal nominal demand policy in a flexible price economy with monopolistic competition where firms have imperfect common knowledge about the shocks hitting the economy. Information imperfections emerge endogenously because firms are assumed to have finite (Shannon) capacity to process information. We then ask how policy that minimizes a quadratic objective in output and prices depends...
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We examine the performance and robustness properties of monetary policy rules in an estimated macroeconomic model in which the economy undergoes structural change and where private agents and the central bank possess imperfect knowledge about the true structure of the economy. Private agents rely on an adaptive learning technology to form expectations and update their beliefs based on incoming ...
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Should the central bank care whether slow adjustment of the price level is due to adjustment costs as in the standard New Keynesian model or due to imperfect information? Most of the analysis of optimal monetary policy is conducted in the Calvo model. This paper studies optimal monetary policy in a model with exogenous dispersed information and in a rational inattention model. JEL: E3, E5, D8.
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This paper examines the implications of imperfect information for optimal monetary policy with a consistent set of informational assumptions for the modeller and the private sector. The assumption that agents have no more information than the economist who constructs and estimates the model on behalf of the policymaker, amounts to what we term the informational consistency principle. We use an ...
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ژورنال
عنوان ژورنال: Journal of Monetary Economics
سال: 2007
ISSN: 0304-3932
DOI: 10.1016/j.jmoneco.2005.08.020