Monetary policy and private sector misperceptions about the natural level of output
In this paper we illustrate, using a simple model of monetary policy, the welfare costs of the private sector and/or the central bank being uncertain about the natural level of output. It turns out that monetary policy strategies that put less weight on output stabilisation can offset some of these welfare costs.
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| Date of creation: | Oct 2005 |
| Date of revision: | |
| Handle: | RePEc:boe:boeewp:279 |
| Contact details of provider: | Postal: Phone: +44 (0)171 601 4030 Fax: +44 (0)171 601 5196 Web page: http://www.bankofengland.co.uk/Email: More information through EDIRC
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References listed on IDEAS
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