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A closed-form analysis of anticipated monetary policy

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  • Kenichi Tamegawa

    (Faculty of Literature and Social Sciences, Yamagata University, 1-4-12 Kojirakawa-machi, Yamagata-shi, Yamagata 990-8560, Japan)

Abstract

In this short study, we use a simple new Keynesian model and carry out a closed-form analysis to observe the effects of anticipated monetary policy. For the assumed parameter space, we find that while an anticipated monetary easing always has inflationary effects, the effects on output depend on the parametric value of inflationary response to an interest-rate rule. If this parameter were low, an anticipated monetary easing would have a positive effect on output. However, if the parameter were sufficiently high, the policy would have a negative impact on output.

Suggested Citation

  • Kenichi Tamegawa, 2014. "A closed-form analysis of anticipated monetary policy," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 15(2), pages 155-161.
    • Handle: RePEc:anp:econom:v:15:y:2014:2:155_161
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    DSGE model; Closed form; Anticipated monetary policy;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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