This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Monetary policy and economic growth: combining short and long run macro analysis Author info | Abstract | Publisher info | Download info | Related research | Statistics Gomes, Orlando
Additional information is available for the following
registered author(s):
The new Keynesian monetary policy model studies the response of the inflation – output gap trade-off to policy decisions taken by the Central Bank, concerning the nominal interest rate time trajectory. Under an optimal setup, this model displays a saddle-path stable equilibrium and, if the stable trajectory is followed, the steady state is characterized by an inflation rate that coincides with the selected inflation target. A high inflation target has positive effects over the rise of effective output relatively to its potential level (the monetary policy problem captures this effect), but it has a perverse impact over investment decisions (the referred problem does not capture this effect, taking it as granted). This second relation can be understood by associating to the first macro model a second setup, which takes consumption and investment decisions, i.e., by considering a long term growth setup. The link between the two is present on the impact of inflation over investment decisions. With this integrated framework one is able to simultaneously study short and long-run macroeconomic phenomena and to jointly analyze the behaviour of nominal and real aggregates. The most important results consist on the determination of an optimal inflation target and on the consideration of short term supply shocks as having a long-run impact producing business cycles.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
2849.
Download reference. The following formats are available: HTML
(with abstract ),
plain text
(with abstract ),
BibTeX ,
RIS (EndNote, RefMan, ProCite),
ReDIF
Length:
Date of creation: Oct 2006Date of revision:
Handle: RePEc:pra:mprapa:2849Contact details of provider: Postal: Schackstr. 4, D-80539 Munich, Germany Phone: +49-(0)89-2180-2219 Fax: +49-(0)89-2180-3900 Web page: http://mpra.ub.uni-muenchen.de More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Ekkehart Schlicht).
Keywords: Monetary policy ; Economic growth ; Inflation targeting ; Output gap. ; Other versions of this item:
Find related papers by JEL classification: C61 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Optimization Techniques; Programming Models; Dynamic Analysis O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
This paper has been announced in the following NEP Reports :
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.: Sergio Rebelo, 2005.
"Real Business Cycle Models: Past, Present and Future ,"
Scandinavian Journal of Economics ,
Blackwell Publishing, vol. 107(2), pages 217-238, 06.
[Downloadable!] (restricted)
Other versions:
Rebelo, Sérgio, 2005.
"Real Business Cycle Models: Past, Present and Future ,"
CEPR Discussion Papers
5384, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Sergio Rebelo, 2005.
"Real Business Cycle Models: Past, Present and Future ,"
RCER Working Papers
522, University of Rochester - Center for Economic Research (RCER).
[Downloadable!] Sergio Rebelo, 2005.
"Real Business Cycle Models: Past, Present, and Future ,"
NBER Working Papers
11401, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) 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)
Other versions:
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) 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) Paolo Surico, 2004.
"Inflation Targeting and Nonlinear Policy Rules: The Case of Asymmetric Preferences ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
[Downloadable!]
Other versions:
Paolo Surico, 2004.
"Inflation Targeting and Nonlinear Policy Rules: the Case of Asymmetric Preferences ,"
Computing in Economics and Finance 2004
108, Society for Computational Economics.
[Downloadable!] Paolo Surico, 2004.
"Inflation Targeting and Nonlinear Policy Rules: the Case of Asymmetric Preferences ,"
Econometric Society 2004 Latin American Meetings
8, Econometric Society.
[Downloadable!] Paolo Surico, 2002.
"Inflation Targeting and Nonlinear Policy Rules: the Case of Asymmetric Preferences ,"
Macroeconomics
0210002, EconWPA, revised 09 Dec 2003.
[Downloadable!] Woodford, M., 1999.
"Optimal Monetary Policy Inertia. ,"
Papers
666, Stockholm - International Economic Studies.
Other versions:
Woodford, Michael, 2000.
"Optimal Monetary Policy Inertia ,"
Seminar Papers
666, Stockholm University, Institute for International Economic Studies.
[Downloadable!] Michael Woodford, 1999.
"Optimal Monetary Policy Inertia ,"
NBER Working Papers
7261, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Michael Woodford, 1999.
"Optimal monetary policy inertia ,"
Proceedings ,
Federal Reserve Bank of San Francisco.
Woodford, Michael, 1999.
"Optimal Monetary Policy Inertia ,"
Manchester School ,
University of Manchester, vol. 67(0), pages 1-35, Supplemen.
[Downloadable!] (restricted) A. Robert Nobay & David A. Peel, 2003.
"Optimal Discretionary Monetary Policy in a Model of Asymmetric Central Bank Preferences ,"
Economic Journal ,
Royal Economic Society, vol. 113(489), pages 657-665, 07.
[Downloadable!] (restricted)
Ruge-Murcia, Francisco J., 2004.
"The inflation bias when the central bank targets the natural rate of unemployment ,"
European Economic Review ,
Elsevier, vol. 48(1), pages 91-107, February.
[Downloadable!] (restricted)
Other versions: Christian Jensen, 2006.
"Expectations, Learning, and Discretionary Policymaking ,"
International Journal of Central Banking ,
International Journal of Central Banking, vol. 2(4), December.
[Downloadable!]
Galí, Jordi, 2002.
"New Perspectives on Monetary Policy, Inflation and the Business Cycle ,"
CEPR Discussion Papers
3210, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions: Lars E. O. Svensson & Michael Woodford, 2003.
"Implementing Optimal Policy through Inflation-Forecast Targeting ,"
NBER Working Papers
9747, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Svensson, Lars E O & Woodford, Michael, 2004.
"Implementing Optimal Policy Through Inflation-Forecast Targeting ,"
CEPR Discussion Papers
4229, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Lars E.O. Svensson & Michael Woodford, 2004.
"Implementing Optimal Policy through Inflation-Forecast Targeting ,"
NBER Chapters ,
in: The Inflation-Targeting Debate, pages 19-92
National Bureau of Economic Research, Inc.
[Downloadable!] Lucas, Robert Jr., 1972.
"Expectations and the neutrality of money ,"
Journal of Economic Theory ,
Elsevier, vol. 4(2), pages 103-124, April.
[Downloadable!] (restricted)
RUGE-MURCIA, Francisco J., 2001.
"A Prudent Central Banker ,"
Cahiers de recherche
2001-07, Universite de Montreal, Departement de sciences economiques.
[Downloadable!]
Other versions:
Ruge-Murcia, F.J., 2001.
"A Prudent Central Banker ,"
Cahiers de recherche
2001-07, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
Francisco J. Ruge-Murciá, 2002.
"A Prudent Central Banker ,"
IMF Staff Papers ,
Palgrave Macmillan Journals, vol. 49(3), pages 7.
[Downloadable!] (restricted) Demosthenes N. Tambakis, 1999.
"Monetary Policy with a Nonlinear Phillips Curve and Asymmetric Loss ,"
Studies in Nonlinear Dynamics & Econometrics ,
Berkeley Electronic Press, vol. 3(4).
[Downloadable!]
Romer, Paul M, 1990.
"Endogenous Technological Change ,"
Journal of Political Economy ,
University of Chicago Press, vol. 98(5), pages S71-102, October.
[Downloadable!] (restricted)
Other versions: Long, John B, Jr & Plosser, Charles I, 1983.
"Real Business Cycles ,"
Journal of Political Economy ,
University of Chicago Press, vol. 91(1), pages 39-69, February.
[Downloadable!] (restricted)
Robert G. King & Sergio T. Rebelo, 2000.
"Resuscitating Real Business Cycles ,"
RCER Working Papers
467, University of Rochester - Center for Economic Research (RCER).
[Downloadable!]
Other versions:
Robert G. King & Sergio T. Rebelo, 2000.
"Resuscitating Real Business Cycles ,"
NBER Working Papers
7534, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) King, Robert G. & Rebelo, Sergio T., 1999.
"Resuscitating real business cycles ,"
Handbook of Macroeconomics ,
in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 14, pages 927-1007
Elsevier.
[Downloadable!] (restricted) Larry E. Jones & Rodolfo E. Manuelli & Henry E. Siu, 2000.
"Growth and business cycles ,"
Staff Report
271, Federal Reserve Bank of Minneapolis.
[Downloadable!]
Other versions: Kydland, Finn E & Prescott, Edward C, 1982.
"Time to Build and Aggregate Fluctuations ,"
Econometrica ,
Econometric Society, vol. 50(6), pages 1345-70, November.
[Downloadable!] (restricted)
Other versions: Douglas Laxton & Guy Debelle, 1996.
"Is the Phillips Curve Really a Curve? Some Evidence for Canada, the United Kingdom, and the United States ,"
IMF Working Papers
96/111, International Monetary Fund.
Svensson, Lars E. O., 1999.
"Inflation targeting as a monetary policy rule ,"
Journal of Monetary Economics ,
Elsevier, vol. 43(3), pages 607-654, June.
[Downloadable!] (restricted)
Other versions:
Lars E.O. Svensson, 1998.
"Inflation Targeting as a Monetary Policy Rule ,"
NBER Working Papers
6790, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Svensson, Lars E.O., 1998.
"Inflation Targeting as a Monetary Policy Rule ,"
Seminar Papers
646, Stockholm University, Institute for International Economic Studies.
[Downloadable!] Svensson, L.E.O., 1998.
"Inflation Targeting as a Monetary Policy Rule ,"
Papers
646, Stockholm - International Economic Studies.
Svensson, Lars E O, 1998.
"Inflation Targeting as a Monetary Policy Rule ,"
CEPR Discussion Papers
1998, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Kydland, Finn E & Prescott, Edward C, 1977.
"Rules Rather Than Discretion: The Inconsistency of Optimal Plans ,"
Journal of Political Economy ,
University of Chicago Press, vol. 85(3), pages 473-91, June.
[Downloadable!] (restricted)
King, Robert G. & Plosser, Charles I. & Rebelo, Sergio T., 1988.
"Production, growth and business cycles : I. The basic neoclassical model ,"
Journal of Monetary Economics ,
Elsevier, vol. 21(2-3), pages 195-232.
[Downloadable!] (restricted)
Lucas, Robert Jr., 1988.
"On the mechanics of economic development ,"
Journal of Monetary Economics ,
Elsevier, vol. 22(1), pages 3-42, July.
[Downloadable!] (restricted)
Full
references
Access and
download statistics Did you know? Springer Verlag was the first commercial publisher to be listed on RePEc .
This page was last updated on 2009-12-1.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .