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Why money talks and wealth whispers : monetary uncertainty and mystique Author info | Abstract | Publisher info | Download info | Related research | Statistics Eijffinger, S.C.W.
Hoeberichts, M.
Schaling, E. (Tilburg University, Center for Economic Research)
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This paper analyzes the effect of monetary uncertainty on the inflationary bias and the variance of output and inflation. Monetary policy uncertainty is modeled as a shock to the central banker s preference for inflation stabilization relative to output stabilization that cannot be observed by the public. We find that the mean and variance of inflation increase with the variance of this preference shock. However, unlike other studies, we find that monetary uncertainty may very well have a positive effect on output stabilization and therefore also on society s welfare.
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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number
47.
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Date of creation: 1997Date of revision:
Handle: RePEc:dgr:kubcen:199747Contact details of provider: Web page: http://center.uvt.nl
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Article Eijffinger, Sylvester C W & Hoeberichts, Marco & Schaling, Eric, 2000.
"Why Money Talks and Wealth Whispers: Monetary Uncertainty and Mystique ,"
Journal of Money, Credit and Banking ,
Blackwell Publishing, vol. 32(2), pages 218-35, May.
Find related papers by JEL classification: E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
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Marco Hoeberichts & Mewael Tesfaselassie & Sylvester Eijffinger, 2004.
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122, Netherlands Central Bank.
[Downloadable!] Marco Hoeberichts & Mewael F. Tesfaselassie & Sylvester Eijffinge, 2004.
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Cambridge Working Papers in Economics
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Schaling, E., 1998.
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Eijffinger, Sylvester C W & Geraats, Petra M, 2002.
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Eijffinger, S.C.W. & Geraats, P.M., 2004.
"How Transparent Are Central Banks? ,"
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[Downloadable!] (restricted) Eijffinger, Sylvester C W & van der Cruijsen, Carin A B, 2007.
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Cruijsen, C. van der & Eijffinger, S.C.W., 2007.
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Discussion Paper
2007-06, Tilburg University, Center for Economic Research.
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27, Money Macro and Finance Research Group.
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Schaling, E. & Hoeberichts, M. & Eijffinger, S., 1998.
"Incentive contracts for central bankers under uncertainty: Walsh-Svensson non-equivalence revisited ,"
Discussion Paper
11, Tilburg University, Center for Economic Research.
[Downloadable!]
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