Optimal monetary policy with asymmetric preferences for output
AbstractWe extend Ruge-Murcia (2003, 2004) to weigh inflation and output and show that empirical evidence supports an asymmetric preference hypothesis for output. We also find evidence that the monetary authority targets potential output in parallel to Barro and Gordon (1983).
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 117 (2012)
Issue (Month): 3 ()
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Web page: http://www.elsevier.com/locate/ecolet
Optimal monetary policy; Asymmetric preferences; Conditional output volatility;
Other versions of this item:
- Scott, Patrick & Cassou, Steven P. & Vázquez Pérez, Jesús, . "Optimal Monetary Policy with Asymmetric Preferences for Output," DFAEII Working Papers 2012-16, University of the Basque Country - Department of Foundations of Economic Analysis II.
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
- E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
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