Search and matching frictions and optimal monetary policy
نویسندگان
چکیده
منابع مشابه
Liquidity, Credit Frictions, and Optimal Monetary Policy
We study optimal monetary policy in a NewMonetarist framework with banking, private liquidity, and credit frictions.We show that whenever part of the decentralized transactions are allowed to use deposit claims backed by interest-bearing assets, the optimal policy is a non-Friedman-rule liquidity trap. In contrast, the Friedman rule is optimal if there are no credit frictions, or if the economy...
متن کاملOptimal Monetary Policy and Transparency under Informational Frictions∗
This paper studies optimal monetary policy and central bank transparency in an economy where firms set prices under informational frictions. The economy is subject to two types of shocks which determine the efficient level of output and the firms’ desired mark-up. To minimize the welfare-reducing output gap and price dispersion among the firms, the central bank controls the firms’ incentives an...
متن کاملCredit frictions and optimal monetary policy, March 2009
We extend the basic (representative-household) New Keynesian [NK] model of the monetary transmission mechanism to allow for a spread between the interest rate available to savers and borrowers, that can vary for either exogenous or endogenous reasons. We find that the mere existence of a positive average spread makes little quantitative difference for the predicted effects of particular policie...
متن کاملComments on “Credit Frictions and Optimal Monetary Policy”, by Cúrdia and Woodford∗
Let me first briefly place it in the broader context of current macroeconomic research. First-generation new-Keynesian models, of the type analyzed by Woodford in his well-known book (2003), were based on a few central imperfections, namely monopolistic competition to allow for non-trivial market power and price setting, and nominal rigidities; their purpose was to show how shifts in demand cou...
متن کاملoptimal monetary policy and inflation targeting
in this paper, by using dynamic stochastic general equilibrium, optimal monetary rule derived for central bank of iran. monetary transmission mechanism of the model includes four equations, aggregate demand, aggregate supply, oil price and taylor rule. we have proved that dynamic structure of aggregate demand relation, regarding monetary inflation in iran, is a function of money growth rate. wi...
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ژورنال
عنوان ژورنال: Journal of Monetary Economics
سال: 2008
ISSN: 0304-3932
DOI: 10.1016/j.jmoneco.2008.03.007