Household's preferences and monetary policy inertia
Interest rates set by central banks puzzlingly move with a certain inertia. We show that household's preferences can be important determinants of the optimal interest rate inertia due to their impact on the efficiency of the monetary policy transmission mechanism.
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- Flamini, Alessandro & Fracasso, Andrea, 2011.
"Household's preferences and monetary policy inertia,"
Elsevier, vol. 111(1), pages 64-67, April.
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