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! ]
Learning, Uncertainty And Central Bank Activism In An Economy With Strategic Interactions Author info | Abstract | Publisher info | Download info | Related research | Statistics Martin Ellison (European University Institute)
Natacha Valla (European University Institute)
Additional information is available for the following
registered author(s):
In this paper we examine the optimal level of central bank activism in a standard model of monetary policy with uncertainty, learning and strategic interactions. We calibrate the model using G7 data and find that the presence of strategic interactions between the central bank and private agents implies that optimality unambiguously recommends caution in monetary policy. An active policy designed to help learning and reduce future uncertainty creates extra volatility in inflation expectations and is detrimental to welfare.
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 Society for Computational Economics in its series Computing in Economics and Finance 2000 with number
183.
Download reference. The following formats are available: HTML
(with abstract ),
plain text
(with abstract ),
BibTeX ,
RIS (EndNote, RefMan, ProCite),
ReDIF
Length:
Date of creation: 05 Jul 2000Date of revision:
Handle: RePEc:sce:scecf0:183Contact details of provider: Postal: CEF 2000, Departament d'Economia i Empresa, Universitat Pompeu Fabra, Ramon Trias Fargas, 25,27, 08005, Barcelona, Spain Fax: +34 93 542 17 46 Email: Web page: http://enginy.upf.es/SCE/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Keywords: Other versions of this item:
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.: Barro, Robert J. & Gordon, David B., 1983.
"Rules, discretion and reputation in a model of monetary policy ,"
Journal of Monetary Economics ,
Elsevier, vol. 12(1), pages 101-121.
[Downloadable!] (restricted)
Other versions: Svensson, Lars E O, 1999.
"Price-Level Targeting versus Inflation Targeting: A Free Lunch? ,"
Journal of Money, Credit and Banking ,
Blackwell Publishing, vol. 31(3), pages 277-95, August.
Other versions: Volker Wieland, 1996.
"Learning by doing and the value of optimal experimentation ,"
Finance and Economics Discussion Series
96-5, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!]
Other versions: Balvers, Ronald J & Cosimano, Thomas F, 1994.
"Inflation Variability and Gradualist Monetary Policy ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 61(4), pages 721-38, October.
[Downloadable!] (restricted)
Bertocchi, Graziella & Spagat, Michael, 1993.
"Learning, experimentation, and monetary policy ,"
Journal of Monetary Economics ,
Elsevier, vol. 32(1), pages 169-183, August.
[Downloadable!] (restricted)
Other versions: Volker Wieland, 1998.
"Monetary policy and uncertainty about the natural unemployment rate ,"
Finance and Economics Discussion Series
1998-22, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!]
Other versions:
Volker Wieland, .
"Monetary Policy and Uncertainty about the Natural Unemployment Rate ,"
Computing in Economics and Finance 1997
11, Society for Computational Economics.
[Downloadable!] Wieland, Volker, 2003.
"Monetary Policy and Uncertainty about the Natural Unemployment Rate ,"
CEPR Discussion Papers
3811, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Volker Wieland, 2003.
"Monetary Policy and Uncertainty about the Natural Unemployment Rate ,"
CFS Working Paper Series
2003/05, Center for Financial Studies.
[Downloadable!] Ehrmann, Michael & Ellison, Martin & Valla, Natacha, 2003.
"Regime-dependent impulse response functions in a Markov-switching vector autoregression model ,"
Economics Letters ,
Elsevier, vol. 78(3), pages 295-299, March.
[Downloadable!] (restricted)
Other versions:
Full
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.)
Michael Spagat & Joao Mauricio Rosal, 2004.
"Structural uncertainty and central bank conservatism: the ignorant should keep their eyes shut ,"
Money Macro and Finance (MMF) Research Group Conference 2003
93, Money Macro and Finance Research Group.
[Downloadable!]
Other versions: Lars E.O. Svensson & Noah Williams, 2008.
"Optimal monetary policy under uncertainty: a Markov jump-linear-quadratic approach ,"
Review ,
Federal Reserve Bank of St. Louis, issue Jul, pages 275-294.
[Downloadable!]
Alberto Locarno, 2006.
"Imperfect knowledge, adaptive learning and the bias against activist monetary policies ,"
Temi di discussione (Economic working papers)
590, Bank of Italy, Economic Research Department.
[Downloadable!]
Other versions: Ehrmann , Michael & Ellison, Martin & Valla, Natacha, 2001.
"Regime-dependent impulse response functions in a Markov-switching vector autoregression model ,"
Research Discussion Papers
11/2001, Bank of Finland.
[Downloadable!]
Other versions: repec:bep:macadv:v:6:y:2006:i:1:p:1288-1288 is not listed on IDEAS
M. Demertzis & N. Viegi, 2004.
"Aiming for the Bull's Eye: Inflation Targeting under Uncertainty ,"
DNB Staff Reports (discontinued)
88, Netherlands Central Bank.
[Downloadable!]
Other versions: Lars E.O. Svensson & Noah Williams, 2008.
"Optimal Monetary Policy Under Uncertainty in DSGE Models: A Markov Jump-Linear-Quadratic Approach ,"
Working Papers Central Bank of Chile
484, Central Bank of Chile.
[Downloadable!]
Other versions: Ellison, Martin & Sarno, Lucio & Vilmunen, Jouko, 2004.
"Monetary policy and learning in an open economy ,"
Research Discussion Papers
3/2004, Bank of Finland.
[Downloadable!]
Other versions: Schaling, E., 2003.
"Learning, inflation reduction and optimal monetary policy ,"
Discussion Paper
74, Tilburg University, Center for Economic Research.
[Downloadable!]
Eugenio Domingo Solans, 2000.
"How should monetary policymakers respond to the new challenges of global economic integration? : commentary ,"
Proceedings ,
Federal Reserve Bank of Kansas City, pages 277-287.
[Downloadable!]
Mewael F. Tesfaselassie, 2008.
"Central Bank Learning and Monetary Policy ,"
Kiel Working Papers
1444, Kiel Institute for the World Economy.
[Downloadable!]
Schaling, Eric, 2003.
"Learning, inflation expectations and optimal monetary policy ,"
Research Discussion Papers
20/2003, Bank of Finland.
[Downloadable!]
Other versions: Ellison, Martin, 2003.
"The Learning Cost of Interest Rate Reversals ,"
CEPR Discussion Papers
4135, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions: Lars E.O. Svensson & Noah M. Williams, 2007.
"Bayesian and Adaptive Optimal Policy under Model Uncertainty ,"
NBER Working Papers
13414, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Darko Pongrac & Kristina Soric & Visnja Vojvodic Rosenzweig, 2007.
"A Mathematical Model and Programme Support for Determination of the Values of the Marginal Reserve Requirement as Instrument of Monetary Policy ,"
Financial Theory and Practice ,
Institute of Public Finance, vol. 31(3), pages 249-278.
[Downloadable!]
Miller, Marcus & Thampanishvong, Kannika & Zhang, Lei, 2003.
"Learning to Forget? Contagion and Political Risk in Brazil ,"
CEPR Discussion Papers
3785, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions: Robert Tetlow & Peter von zur Muehlen, 2004.
"Avoiding Nash Inflation: Bayesian and Robus Responses to Model Uncertainty ,"
Review of Economic Dynamics ,
Elsevier for the Society for Economic Dynamics, vol. 7(4), pages 869-899, October.
[Downloadable!] (restricted)
Other versions: Maria Demertzis & Nicola Viegi, 2004.
"The Dynamic Properties of Inflation Targeting Under Uncertainty ,"
DNB Staff Reports (discontinued)
113, Netherlands Central Bank.
[Downloadable!]
Access and
download statistics Did you know? IDEAS also indexes software components .
This page was last updated on 2009-11-13.
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 .