Super-Inertial Interest Rate Rules Are Not Solutions of Ramsey Optimal Monetary Policy
Jean-Bernard Chatelain
(1, 2)
,
Kirsten Ralf
(3)
Jean-Bernard Chatelain
- Fonction : Auteur
- PersonId : 8315
- IdHAL : jean-bernard-chatelain
- ORCID : 0000-0001-7768-9369
- IdRef : 137447256
Résumé
Giannoni and Woodford (2003) found that the equilibrium determined by commitment to a super-inertial rule (where the sum of the parameters of lags of interest rate exceed ones and does not depend on the auto-correlation of shocks) corresponds to the unique bounded solution of Ramsey optimal policy for the new-Keynesian model. By contrast, this note demonstrates that commitment to an inertial rule (where the sum of the parameters of lags of interest rate is below one and only depends on the auto-correlation of shocks) corresponds to the unique bounded solution.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Super-Inertial Interest Rate Rules Are Not Solutions of Ramsey Optimal Monetary Policy
|
Résumé |
en
Giannoni and Woodford (2003) found that the equilibrium determined by commitment to a super-inertial rule (where the sum of the parameters of lags of interest rate exceed ones and does not depend on the auto-correlation of shocks) corresponds to the unique bounded solution of Ramsey optimal policy for the new-Keynesian model. By contrast, this note demonstrates that commitment to an inertial rule (where the sum of the parameters of lags of interest rate is below one and only depends on the auto-correlation of shocks) corresponds to the unique bounded solution.
|
Auteur(s) |
Jean-Bernard Chatelain
1, 2
, Kirsten Ralf
3
1
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
2
PJSE -
Paris Jourdan Sciences Economiques
( 578027 )
- 48 boulevard Jourdan 75014 Paris
- France
3
ESCE
( 378280 )
-
- France
|
Public visé |
Scientifique
|
Langue du document |
Anglais
|
Nom de la revue |
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Internationale
|
Date de publication |
2023
|
Mots-clés (JEL) |
|
Domaine(s) |
|
Mots-clés |
en
New-Keynesian Model, Ramsey Optimal Policy, Interest Rate Smoothing, Super-Inertial Rule, Inertial Rule
|
DOI | 10.2139/ssrn.3232744 |
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