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Performance of monetary policy with nternal Central Bank forecasting Author info | Abstract | Publisher info | Download info | Related research | Statistics Seppo Honkapohja () (University of Cambridge - Faculty of Economics and Politics, Austin Robinson Building, Sidgwick Avenue, Cambridge CB3 9DD, United Kingdom. )
Kaushik Mitra () (University of London - Economics, Royal Holloway College, Egham, Surrey TW20 0EX, United Kingdom. )
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Recent models of monetary policy have analyzed the desirability of different optimal and ad hoc interest rules under the restrictive assumption that forecasts of the private sector and the central bank are homogenous. In this paper, we study the implications of heterogeneity in forecasts of the central bank and private agents for the performance of interest rules from the learning viewpoint. JEL Classification: E52; E31; D84.
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Paper provided by European Central Bank in its series Working Paper Series with number
127.
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Length: 54 pages
Date of creation: Feb 2002Date of revision:
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Keywords: Adaptive learning stability heterogeneity monetary policy. Other versions of this item:
Article Paper Kaushik Mitra & Seppo Honkapohja, 2004.
"Performance of Monetary Policy with Internal Central Bank Forecasting ,"
Royal Holloway, University of London: Discussion Papers in Economics
04/18, Department of Economics, Royal Holloway University of London, revised Jul 2004.
[Downloadable!] Honkapohja, Seppo & Mitra, Kaushik, 2002.
"Performance of monetary policy with internal central bank forecasting ,"
Research Discussion Papers
3/2002, Bank of Finland.
[Downloadable!] References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Richard Clarida & Jordi Gali & Mark Gertler, 1999.
"The Science of Monetary Policy: A New Keynesian Perspective ,"
Journal of Economic Literature ,
American Economic Association, vol. 37(4), pages 1661-1707, December.
[Downloadable!] (restricted)
Other versions:
Clarida, Richard & Galí, Jordi & Gertler, Mark, 1999.
"The Science of Monetary Policy: A New Keynesian Perspective ,"
CEPR Discussion Papers
2139, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Clarida, R. & Gali, J. & Gertler, M., 1999.
"The Science of Monetary Policy: A New Keynesian Perspective ,"
Working Papers
99-13, C.V. Starr Center for Applied Economics, New York University.
[Downloadable!] Richard Clarida & Jordi Galí & Mark Gertler, 1997.
"The Science of Monetary Policy: A New Keynesian Perspective ,"
Economics Working Papers
356, Department of Economics and Business, Universitat Pompeu Fabra, revised Apr 1999.
[Downloadable!] Richard Clarida & Jordi Gali & Mark Gertler, 1999.
"The Science of Monetary Policy: A New Keynesian Perspective ,"
NBER Working Papers
7147, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) George W. Evans & Seppo Honkapohja, 2003.
"Expectations and the Stability Problem for Optimal Monetary Policies ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 70(4), pages 807-824, October.
[Downloadable!] (restricted)
Other versions:
Evans, George W. & Honkapohja, Seppo, 2000.
"Expectations and the stability problem for optimal monetary policies ,"
Discussion Paper Series 1: Economic Studies
2000,10, Deutsche Bundesbank, Research Centre.
[Downloadable!] Evans, George W & Honkapohja, Seppo, 2001.
"Expectations and the Stability Problem for Optimal Monetary Policies ,"
CEPR Discussion Papers
2805, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) George W. Evans & Seppo Honkapohja, 2001.
"Expectations and the Stability Problem for Optimal Monetary Policies ,"
University of Oregon Economics Department Working Papers
2001-6, University of Oregon Economics Department, revised 03 Aug 2001.
[Downloadable!] Honkapohja, S. & Evans, G.W., 2000.
"Expectations and the Stability Problem for Optimal Monetary Policies ,"
University of Helsinki, Department of Economics
481, Department of Economics.
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Seppo Honkapohja & Kaushik Mitra, 2006.
"Learning Stability in Economies with Heterogeneous Agents ,"
Review of Economic Dynamics ,
Elsevier for the Society for Economic Dynamics, vol. 9(2), pages 284-309, April.
[Downloadable!] (restricted)
Other versions:
Kaushik Mitra & Seppo Honkapohja, 2004.
"Learning Stability in Economies with Heterogenous Agents ,"
Royal Holloway, University of London: Discussion Papers in Economics
04/17, Department of Economics, Royal Holloway University of London, revised Jul 2004.
[Downloadable!] Seppo Honkapohja & Kaushik Mitra, 2002.
"Learning stability in economics with heterogenous agents ,"
Working Paper Series
120, European Central Bank.
[Downloadable!] Honkapohja, Seppo & Mitra, Kaushik, 2002.
"Learning Stability in Economies with Heterogenous Agents ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo GmbH.
[Downloadable!] Kauko, Karlo, 2002.
"Links between securities settlement systems: An oligopoly theoretic approach ,"
Research Discussion Papers
27/2002, Bank of Finland.
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Orlando Gomes, .
"Volatility, Heterogeneous Agents and Chaos ,"
The Electronic Journal of Evolutionary Modeling and Economic Dynamics ,
IFReDE - Université Montesquieu Bordeaux IV.
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Other versions: Gomes, O. & Mendes, D. A. & Mendes, V. P. & Sousa Ramos, J., 2007.
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Money Macro and Finance (MMF) Research Group Conference 2006
139, Money Macro and Finance Research Group.
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Ichiro Muto, 2007.
"Productivity Growth, Transparency, and Monetary Policy ,"
IMES Discussion Paper Series
07-E-08, Institute for Monetary and Economic Studies, Bank of Japan.
[Downloadable!]
George W. Evans & Bruce McGough, 2005.
"Optimal Constrained Interest-rate Rules ,"
University of Oregon Economics Department Working Papers
2005-9, University of Oregon Economics Department, revised 31 May 2006.
[Downloadable!]
Other versions:
Bruce McGough & George Evans, 2004.
"Optimal Constrained Interest Rate Rules ,"
Computing in Economics and Finance 2004
134, Society for Computational Economics.
GEORGE W. EVANS & BRUCE McGOUGH, 2007.
"Optimal Constrained Interest-Rate Rules ,"
Journal of Money, Credit and Banking ,
Blackwell Publishing, vol. 39(6), pages 1335-1356, 09.
[Downloadable!] (restricted) Rantala, Anssi, 2003.
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Research Discussion Papers
30/2003, Bank of Finland.
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G. C. Lim & Paul D. McNelis, 2006.
"Inflation Targeting, Learning and Q Volatility in Small Open Economies ,"
Melbourne Institute Working Paper Series
wp2006n22, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
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Paul D. McNelis & Guay Lim, 2006.
"Inflation Targeting, Learning and Q Volatility in Small Open Economies ,"
Computing in Economics and Finance 2006
104, Society for Computational Economics.
Lim, G.C. & McNelis, Paul D., 2007.
"Inflation targeting, learning and Q volatility in small open economies ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 31(11), pages 3699-3722, November.
[Downloadable!] (restricted) Ichiro Muto, 2008.
"Monetary Policy and Learning from the Central Bank's Forecast ,"
IMES Discussion Paper Series
08-E-01, Institute for Monetary and Economic Studies, Bank of Japan.
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Mikko Niskanen, 2004.
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Macroeconomics
0405016, EconWPA.
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Martin Fukac, 2008.
"Heterogeneous Expectations, Adaptive Learning,and Forward-Looking Monetary Policy ,"
Reserve Bank of New Zealand Discussion Paper Series
DP2008/07, Reserve Bank of New Zealand.
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Kaushik Mitra & Seppo Honkapohja, 2004.
"Monetary Policy with Internal Central Bank Forecasting: A Case of Heterogenous Information ,"
Royal Holloway, University of London: Discussion Papers in Economics
04/16, Department of Economics, Royal Holloway University of London, revised Jul 2004.
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Evans , George W & Honkapohja, Seppo, 2007.
"Expectations, learning and monetary policy: an overview of recent research ,"
Research Discussion Papers
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George Evans & Seppo Honkapohja, 2008.
" Expectations, Learning and Monetary Policy: An Overview of Recent Research ,"
CDMA Working Paper Series
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[Downloadable!] Evans, George W & Honkapohja, Seppo, 2008.
"Expectations, Learning and Monetary Policy: An Overview of Recent Rersearch ,"
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[Downloadable!] (restricted) Jasmina Arifovic & James B. Bullard & Olena Kostyshyna, 2007.
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Rosal, Joao Mauricio & Spagat, Michael, 2002.
"Structural Uncertainty and Central Bank Conservatism: The Ignorant Should Keep Their Eyes Shut ,"
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3568, C.E.P.R. Discussion Papers.
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Orlando Gomes, 2004.
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