The Informational Effect of Monetary Policy and the Case for Policy Commitment

نویسندگان

چکیده

I study how the informational effect of monetary policy changes optimal conduct policy. In my model, private sector extracts information about unobserved shocks from central bank’s interest rate decisions. The bank optimally by committing to a state-contingent rule, in which case Phillips curve becomes endogenous optimization problem. dynamic rule overshoots natural-rate shock and gradually responds cost-push shock, makes change expected output growth but not inflation.

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The Informational Effect of Monetary Policy and the Case for Policy Commitment

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ژورنال

عنوان ژورنال: Working paper

سال: 2022

ISSN: ['2381-6287']

DOI: https://doi.org/10.26509/frbc-wp-201907r