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Monetary Policy and Potential Output Uncertainty: A Quantitative Assessment

Listed author(s):
  • Simona Delle Chiaie

    ()

    (University of Rome, Tor Vergata)

This paper contributes to the recent literature that studies the quantitative implications of the imperfect information about potential output for the conduct of monetary policy. By means of Bayesian techniques, a small New Keynesian model is estimated taking explicitly account of the imperfect information problem. The estimation of the structural parameters and of the monetary authorities.objectives is key in assessing the quantitative relevance of the imperfect information problem and in evaluating the robustness of previous exercises based on calibration. Finally, the model allows us to analyse the usefulness of unit labor costs as monetary policy indicator.

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File URL: ftp://www.ceistorvergata.it/repec/rpaper/No-94.pdf
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Paper provided by Tor Vergata University, CEIS in its series CEIS Research Paper with number 94.

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Length: 34
Date of creation: 20 Feb 2007
Handle: RePEc:rtv:ceisrp:94
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CEIS - Centre for Economic and International Studies - Faculty of Economics - University of Rome "Tor Vergata" - Via Columbia, 2 00133 Roma

Phone: +390672595601
Fax: +39062020687
Web page: http://www.ceistorvergata.it
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