Asymmetric expectation effects of regime shifts in monetary policy
نویسندگان
چکیده
منابع مشابه
Asymmetric Expectation Effects of Regime Shifts and the Great Moderation
We assess the quantitative importance of expectation effects of regime shifts in monetary policy in a DSGE model that allows the monetary policy rule to switch between a “bad” regime and a ”good” regime. When agents take into account such regime shifts in forming expectations, the expectation effect is asymmetric. In the good regime, the expectation effect is small despite agents’ disbelief tha...
متن کاملAre the Effects of Monetary Policy Asymmetric?
This paper focuses on whether monetary policy has asymmetric effects. By building on the Markov switching model introduced by Hamilton (1989), we examine questions like: Does monetary policy have the same effect regardless of the current phase of economic fluctuations? Given that the economy is currently in a recession, does a fall in interest rates increase the probability of an expansion? Doe...
متن کاملAsymmetric Effects of Monetary Policy and Business Cycles in Iran using Markov-switching Models
This paper investigates the asymmetric effects of monetary policy on economic growth over business cycles in Iran. Estimating the models using the Hamilton (1989) Markov-switching model and by employing the data for 1960-2012, the results well identify two regimes characterized as expansion and recession. Moreover, the results show that an expansionary monetary policy has a positive and statist...
متن کاملOptimal Monetary Policy Regime Switches∗
Given structural shifts in the economy, optimal simple monetary policy rules may respond with switches in their policy parameters. When the growth rate, inter-temporal preferences, or volatilities switch, the monetary authority chooses regime-dependent policy parameters to maximize welfare. These optimized policy parameters may differ across regimes and from the optimal choice of parameters for...
متن کاملAsymmetric Effects of Monetary Policy in the United States
implied by models with menu costs (see, among others, Ball and Romer, 1990, and Ball and Mankiw, 1994). In static (deterministic) settings, standard menu-cost models imply that “big” monetary policy shocks are neutral because firms would find it optimal to adjust nominal prices, while “small” monetary policy shocks would have real effects because keeping nominal prices fixed is associated with ...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Review of Economic Dynamics
سال: 2009
ISSN: 1094-2025
DOI: 10.1016/j.red.2008.10.001