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A Guided Tour of the World of Rational Expectations Models and Optimal Policies

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Author Info

  • Jeanfils, P.

Abstract

This working paper after quickly reviewing the different types of existing macro models presents some basic tools that have proved useful for analysing monetary policy in recent years. Through the use of a simple quantitative forward-looking model of output, inflation and interest rate determination, the paper tries to familiarise the reader with some of the techniques used in research on optimal policy, including rational expectations theory, timeconsistency analysis, the Lucas critique and computer simulation techniques.

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Bibliographic Info

Paper provided by Warwick - Development Economics Research Centre in its series Papers with number 16.

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Length: 44 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:fth:warwde:16

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Postal: University of Warwick, Development Economics Research Center, Coventry CV4 7AL, United Kingdom.
Phone: +44 (0) 2476 523202
Fax: +44 (0) 2476 523032
Web page: http://www.warwick.ac.uk/fac/soc/Economics/
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Related research

Keywords: MACROECONOMICS ; MONETARY POLICY ; INFLATION ; EXPECTATIONS;

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Cited by:
  1. Siok Kun, Sek, 2009. "The impacts of economic structures on the performance of simple policy rules in a small open economy," MPRA Paper 25065, University Library of Munich, Germany.

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