Optimal stabilization policy with flexible prices

Please use this identifier to cite or link to this item: http://dspace.mediu.edu.my:8181/xmlui/handle/10419/19102

Full metadata record

DC Field	Value	Language
dc.creator	Berentsen, Aleksander	-
dc.creator	Waller, Christopher Jude	-
dc.date	2005	-
dc.date.accessioned	2013-10-16T07:02:54Z	-
dc.date.available	2013-10-16T07:02:54Z	-
dc.date.issued	2013-10-16	-
dc.identifier	http://hdl.handle.net/10419/19102	-
dc.identifier	ppn:510009417	-
dc.identifier.uri	http://koha.mediu.edu.my:8181/xmlui/handle/10419/19102	-
dc.description	We construct a dynamic stochastic general equilibrium model to study optimal monetary stabilization policy. Prices are fully flexible and money is essential for trade. Our main result is that if the central bank pursues a long-run price path, thereby controlling inflation expectations, it can improve welfare by stabilizing short-run aggregate shocks. The optimal policy involves smoothing nominal interest rates which effectively smooths consumption across states. Failure to follow a long-run price path makes any stabilization attempt ineffective.	-
dc.language	eng	-
dc.publisher		-
dc.relation	CESifo working papers 1638	-
dc.rights	http://www.econstor.eu/dspace/Nutzungsbedingungen	-
dc.subject	E5	-
dc.subject	E4	-
dc.subject	ddc:330	-
dc.subject	Geldpolitik	-
dc.subject	Preisniveaustabilität	-
dc.subject	Konjunkturpolitik	-
dc.subject	Soziale Wohlfahrtsfunktion	-
dc.subject	Theorie	-
dc.subject	Preisrigidität	-
dc.subject	Allgemeines Gleichgewicht	-
dc.subject	Theorie	-
dc.title	Optimal stabilization policy with flexible prices	-
dc.type	doc-type:workingPaper	-
Appears in Collections:	EconStor

Files in This Item:

There are no files associated with this item.

DSpace JSPUI