Optimal Monetary Policy Under Bounded Rationality
DOWNLOAD
Download Optimal Monetary Policy Under Bounded Rationality PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get Optimal Monetary Policy Under Bounded Rationality book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages. If the content not found or just blank you must refresh this page
Optimal Monetary Policy Under Bounded Rationality
DOWNLOAD
Author : Jonathan Benchimol
language : en
Publisher: International Monetary Fund
Release Date : 2019-08-02
Optimal Monetary Policy Under Bounded Rationality written by Jonathan Benchimol and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2019-08-02 with Business & Economics categories.
The form of bounded rationality characterizing the representative agent is key in the choice of the optimal monetary policy regime. While inflation targeting prevails for myopia that distorts agents' inflation expectations, price level targeting emerges as the optimal policy under myopia regarding the output gap, revenue, or interest rate. To the extent that bygones are not bygones under price level targeting, rational inflation expectations is a minimal condition for optimality in a behavioral world. Instrument rules implementation of this optimal policy is shown to be infeasible, questioning the ability of simple rules à la Taylor (1993) to assist the conduct of monetary policy. Bounded rationality is not necessarily associated with welfare losses.
Optimal Monetary Poicy Under Bounded Rationality
DOWNLOAD
Author : Jonathan Benchimol
language : en
Publisher:
Release Date : 2019
Optimal Monetary Poicy Under Bounded Rationality written by Jonathan Benchimol and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2019 with categories.
The form of bounded rationality characterizing the representative agent is key in the choice of the optimal monetary policy regime. While inflation targeting prevails for myopia that distorts agents' inflation expectations, price level targeting emerges as the optimal policy under myopia regarding the output gap, revenue, or interest rate. To the extent that bygones are not bygones under price level targeting, rational inflation expectations is a minimal condition for optimality in a behavioral world. Instrument rules implementation of this optimal policy is shown to be infeasible, questioning the ability of simple rules à la Taylor (1993) to assist the conduct of monetary policy. Bounded rationality is not necessarily associated with welfare losses.
The Impacts Of Monetary Policy In The 21st Century
DOWNLOAD
Author : Ramesh Chandra Das
language : en
Publisher: Emerald Group Publishing
Release Date : 2019-09-02
The Impacts Of Monetary Policy In The 21st Century written by Ramesh Chandra Das and has been published by Emerald Group Publishing this book supported file pdf, txt, epub, kindle and other format this book has been release on 2019-09-02 with Business & Economics categories.
The Impacts of Monetary Policy in the 21st Century illustrates the effect of financial policies upon global economic indicators, with special reference made to issues effecting East Asian nations generally and with a particular focus on Indian economic development since 2000.
Monetary Policy And Exchange Rate Dynamics In A Behavioral Open Economy Model
DOWNLOAD
Author : Marcin Kolasa
language : en
Publisher: International Monetary Fund
Release Date : 2022-06-03
Monetary Policy And Exchange Rate Dynamics In A Behavioral Open Economy Model written by Marcin Kolasa and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2022-06-03 with Business & Economics categories.
We develop an extension of the open economy New Keynesian model in which agents are boundedly rational à la Gabaix (2020). Our setup nests rational expectations (RE) as a special case and it can successfully mitigate many “puzzling” aspects of the relationship between exchange rates and interest rates. Since the model implies an uncovered interest rate parity (UIP) condition featuring behavioral expectations, our results are also consistent with recent empirical evidence showing that several UIP puzzles vanish when actual exchange rate expectations are used (instead of realizations implicitly coupled with the RE assumption). We find that cognitive discounting dampens the effects of current monetary shocks and lowers the efficacy of forward guidance (FG), but its relative importance in mitigating the so-called FG puzzle is decreasing in openness. Finally, we show that accounting for myopia exacerbates the small open economy unit-root problem, makes positive monetary spillovers more likely, and increases the persistence of net foreign assets and the real exchange rate.
The Diagnostic Financial Accelerator
DOWNLOAD
Author : Lahcen Bounader
language : en
Publisher: International Monetary Fund
Release Date : 2024-06-28
The Diagnostic Financial Accelerator written by Lahcen Bounader and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2024-06-28 with categories.
We develop a model with diagnostic expectations (DE) and a financial accelerator (FA) that generates mutually reinforcing shock amplification, especially in the case of demand shocks. However, supply shocks can be dampened via a debt deflation channel, which is strengthened amid DE. Importantly, the model results in a worsening of the inflation-output volatility trade-off confronting policymakers. In contrast to most of the literature—which argues against targeting the level of asset prices—our financial accelerator model with DE suggests that targeting house price growth may result in welfare gains.
Macroeconomic Paradigms And Economic Policy
DOWNLOAD
Author : Nicola Acocella
language : en
Publisher: Cambridge University Press
Release Date : 2016-06-09
Macroeconomic Paradigms And Economic Policy written by Nicola Acocella and has been published by Cambridge University Press this book supported file pdf, txt, epub, kindle and other format this book has been release on 2016-06-09 with Business & Economics categories.
An examination of macroeconomic policy, focusing on the relationship between free-market policies and government intervention.
Handbook Of Monetary Economics
DOWNLOAD
Author : Benjamin M. Friedman
language : en
Publisher: Elsevier
Release Date : 2010-11-16
Handbook Of Monetary Economics written by Benjamin M. Friedman and has been published by Elsevier this book supported file pdf, txt, epub, kindle and other format this book has been release on 2010-11-16 with Business & Economics categories.
"What tools are available for setting and analyzing monetary policy? World-renowned contributors examine recent evidence on subjects as varied as price-setting, inflation persistence, the private sector's formation of inflation expectations, and the monetary policy transmission mechanism. Stopping short of advocating conclusions about the ideal conduct of policy, the authors focus instead on analytical methods and the changing interactions among the ingredients and properties that inform monetary models. The influences between economic performance and monetary policy regimes can be both grand and muted, and this volume clarifies the present state of this continually evolving relationship." [source : 4e de couv.].
Handbook Of Monetary Economics Vols 3a 3b Set
DOWNLOAD
Author : Benjamin M. Friedman
language : en
Publisher: Elsevier
Release Date : 2010-11-10
Handbook Of Monetary Economics Vols 3a 3b Set written by Benjamin M. Friedman and has been published by Elsevier this book supported file pdf, txt, epub, kindle and other format this book has been release on 2010-11-10 with Business & Economics categories.
How have monetary policies matured during the last decade? The recent downturn in economies worldwide have put monetary policies in a new spotlight. In addition to their investigations of new tools, models, and assumptions, they look carefully at recent evidence on subjects as varied as price-setting, inflation persistence, the private sector's formation of inflation expectations, and the monetary policy transmission mechanism. They also reexamine standard presumptions about the rationality of asset markets and other fundamentals. Stopping short of advocating conclusions about the ideal conduct of policy, the authors focus instead on analytical methods and the changing interactions among the ingredients and properties that inform monetary models. The influences between economic performance and monetary policy regimes can be both grand and muted, and this volume clarifies the present state of this continually evolving relationship. - Presents extensive coverage of monetary policy theories with an eye toward questions raised by the recent financial crisis - Explores the policies and practices used in formulating and transmitting monetary policies - Questions fiscal-monetary connnections and encourages new thinking about the business cycle itself - Observes changes in the formulation of monetary policies over the last 25 years
Behavioural Macroeconomics
DOWNLOAD
Author : Paul De Grauwe
language : en
Publisher: Oxford University Press
Release Date : 2019-10-25
Behavioural Macroeconomics written by Paul De Grauwe and has been published by Oxford University Press this book supported file pdf, txt, epub, kindle and other format this book has been release on 2019-10-25 with Business & Economics categories.
Modern macroeconomics has been based on the paradigm of the rational individual capable of understanding the complexity of the world. This has created a very shallow theory of the business cycle in which nothing happens in the macroeconomy unless shocks occur from outside. Behavioural Macroeconomics: Theory and Policy uses a different paradigm. It assumes that individual agents experience cognitive limitations preventing them from having rational expectations. Instead these individuals use simple rules of behaviour. Behavioural Macroeconomics introduces rationality by allowing individuals to learn from their mistakes and to switch to the rules that perform better. It introduces the idea of endogenously generated "animals spirits" that drive the business cycle and are in turn influenced by it, and applies this model to shed new light on a number of important issues. It analyses the role of fiscal policy in stabilizing the economy while maintaining debt sustainability; expands the model to include a banking sector and show how banks amplify the booms and busts; and explains how animal spirits help to synchronize the business cycles across countries. The model set out in Behavioural Macroeconomics leads to very different policy implications from the mainstream macroeconomic model. It shows how policymakers have a responsibility to stabilize an otherwise unstable system.
Exchange Rates And Global Financial Policies
DOWNLOAD
Author : Paul De Grauwe
language : en
Publisher: World Scientific
Release Date : 2014-02-04
Exchange Rates And Global Financial Policies written by Paul De Grauwe and has been published by World Scientific this book supported file pdf, txt, epub, kindle and other format this book has been release on 2014-02-04 with Business & Economics categories.
Exchange Rates and Global Financial Policies brings together research and work done by world-class economist Paul De Grauwe over the past two decades. Drawing inspiration from behavioural finance literature, De Grauwe covers topics such as exchange rate economics, monetary integration (with particular attention on the Eurozone), and international macroeconomics.His work is categorised across three parts. The first part develops new theoretical and empirical approaches to exchange rate modelling. The second part features a collection of papers on the theory and empirical analysis of monetary unions. The final part contains criticism of mainstream macroeconomic models as well as proposed alternative modelling approaches.