The concept of rules for monetary policy has been more and more critized in recent years. The Deutsche Bundesbank is also urged to give up monetary targeting. The idea is that the economic performance could be improved if monetary policy became more pragmatic and was more concerned about slow growth and high unemployment. In reality, however, monetary policy in the past decades has been highly ...

We investigate time consistency of monetary valuations, also called monetary risk measures or monetary utility functions. Through a number of recent research contributions, it has become clear that time consistency imposes strong constraints on families of monetary valuations conditioned on available information at different time instants. In this paper we add to these results by showing that c...

in this paper, by using a model of the new keynesians, we investigated the role of the central bank's accountability to shocks that causes deviations in the performance of the monetary policymakers. for this purpose, we used quarterly data for 69: 1 to 93: 3, and estimated the basic equations of the new keynesians model. then, by calculating the optimal values for the central bank's a...

We explore the existence of endogenous fluctuations with a rational bubble and the stabilizing role of fiscal and monetary policies. Consumers’ credit constraints, the role of collateral and a portfolio choice are the key ingredients of our analysis. We consider an overlapping generations model where households realize a portfolio choice between three assets with different returns (capital, mon...

A central feature of the monetarist approach to the problem of inflation is a preannounced gradual reduction in monetary growth. This reduction is to be sustained until a monetary growth consistent with a zero, or an acceptably low, target rate of inflation is reached. Thereafter, monetary growth is to be held constant at this new rate. The specifics of this prescription differ by the type of m...