منابع مشابه
Learning, monetary policy rules, and macroeconomic stability
Several papers have documented a regime switch in US monetary policy from ‘passive’ and destabilizing in the pre-1979 period to ‘active’ and stabilizing afterwards. These studies typically work with DSGE models with rational expectations. This paper relaxes the assumption of rational expectations and allows for learning instead. Economic agents form expectations from simple models and update th...
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Following recent episodes of financial distress, the interaction between monetary policy and asset price fluctuations has gained renewed attention. Here, we assess the role of asset price misalignments in monetary policy in an adaptive learning context. Our model first extends Bullard and Mitra (2002), including an additional role for asset prices. From the point of view of the E-Stability crit...
متن کاملAdaptive Learning, Forecast-Based Instrument Rules and Monetary Policy
This paper argues that recently popular forecast-based instrument rules for monetary policy may fail to stabilize economic uctuations. In a New Keynesian model of output gap and ination determination in which private agents face multi-period decision problems, but have non-rational expectations and learn over time, if the monetary authority adopts a forecast-based instrument rule and responds...
متن کاملMonetary policy rules, asset prices and adaptive learning
Following the damaging real effects of asset price fluctuations over the recent financial crisis, the debate on the appropriate role of such prices in a monetary policy context has gained renewed attention. This paper argues that a direct monetary policy response to asset prices is not desirable under common instrumental rate rules. To illustrate this point, we build an adaptive learning model,...
متن کاملRobust Stability of Monetary Policy Rules under Adaptive Learning
Recent research has explored how minor changes in expectation formation can change the stability properties of a model (Duffy and Xiao 2007, Evans and Honkapohja 2009). This paper builds on this research by examining an economy subject to a variety of monetary policy rules under an endogenous learning algorithm proposed by Marcet and Nicolini (2003). The results indicate that operational versio...
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ژورنال
عنوان ژورنال: The Economic Journal
سال: 2012
ISSN: 0013-0133,1468-0297
DOI: 10.1111/j.1468-0297.2012.02525.x