arXiv Open Access 2023

On the unimportance of commitment for monetary policy

Juan Paez-Farrell
Lihat Sumber

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

Penulis (1)

J

Juan Paez-Farrell

Format Sitasi

Paez-Farrell, J. (2023). On the unimportance of commitment for monetary policy. https://arxiv.org/abs/2308.08044

Akses Cepat

Lihat di Sumber
Informasi Jurnal
Tahun Terbit
2023
Bahasa
en
Sumber Database
arXiv
Akses
Open Access ✓