The new Keynesian approach to monetary policy analysis: Lessons and new directions
AbstractI discuss several lessons regarding the design and conduct of monetary policy that have emerged out of the New Keynesian research program. Those lessons include the bene.ts of price stability, the gains from commitment about future policies, the importance of nat- ural variables as benchmarks for policy, and the bene.ts of a credible anti-inflationary stance. I also point to one challenge facing NK modelling efforts: the need to come up with relevant sources of policy tradeoffs. A potentially useful approach to meeting that challenge, based on the introduction of real imperfections, is presented.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. 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.
Bibliographic InfoPaper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 1075.
Date of creation: Feb 2008
Date of revision:
Contact details of provider:
Web page: http://www.econ.upf.edu/
Sticky prices; optimal policy; interest rate rules; policy tradeoffs; credibility; gains from commitment;
Find related papers by JEL classification:
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Clerc, L. & Dellas, H. & Loisel, O., 2010.
"To be or not to be in monetary union: A synthesis,"
308, Banque de France.
- Blommestein, H.J. & Eijffinger, S.C.W. & Qian, Z., 2011. "Monetary Policy Rules, Adverse Selection and Long-Run Financial Risk," Discussion Paper 2011-121, Tilburg University, Center for Economic Research.
- Regassa Senbeta S., 2011.
"How applicable are the New Keynesian DSGE models to a typical Low-Income Economy?,"
2011016, University of Antwerp, Faculty of Applied Economics.
- Senbeta, Sisay, 2011. "How applicable are the new keynesian DSGE models to a typical low-income economy?," MPRA Paper 30931, University Library of Munich, Germany.
- Mundle, Sudipto & Bhanumurthy, N.R. & Das, Surajit, 2011.
"Fiscal consolidation with high growth: A policy simulation model for India,"
Elsevier, vol. 28(6), pages 2657-2668.
- Mundle, Sudipto & Bhanumurthy, N.R. & Das, Surajit, 2010. "Fiscal consolidation with high growth: A policy simulation model for India," Working Papers 10/73, National Institute of Public Finance and Policy.
- Sudipto Mundle & N.R. Bhanumurthy & Surajit Das, 2010. "Fiscal Consolidation with High Growth : A Policy Simulation Model for India," Macroeconomics Working Papers 23070, East Asian Bureau of Economic Research.
- Sudipto Mundle & N.R. Bhanumurthy & Surajit Das, 2010. "Fiscal Consolidation with High Growth A Policy Simulation Model for India," Working Papers id:2825, eSocialSciences.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.