arXiv
Open Access
2023
On the unimportance of commitment for monetary policy
Juan Paez-Farrell
Abstrak
In a New Keynesian model where the trade-off between stabilising the aggregate inflation rate and the output gap arises from sectoral asymmetries, the gains from commitment are either zero or negligible. Thus, to the extent that economic fluctuations are caused by sectoral shocks, policies designed to overcome the stabilisation bias are aiming to correct an unimportant problem.
Topik & Kata Kunci
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Juan Paez-Farrell
Akses Cepat
Informasi Jurnal
- Tahun Terbit
- 2023
- Bahasa
- en
- Sumber Database
- arXiv
- Akses
- Open Access ✓