Expectations, and Credibility in a Model of Monetary Policy
Data(s) |
01/06/2003
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Resumo |
Recent monetary history has been characterized by monetary authorities which have been, alternatively hard and soft on inflation. In a vintage capital framework, investment decisions are not easily reversed. Therefore, expectations of policy as well as current policy are important to the investment decision. Here, a vintage capital model is used to assess the value of central bank credibility for a policy change. Policy in this model is assumed to be private information of the central banker. Agents learn about that policy which to study the ensuing transitional dynamics following a change in monetary policy regime. |
Formato |
application/pdf |
Identificador |
http://digitalcommons.uconn.edu/econ_wpapers/200334 http://digitalcommons.uconn.edu/cgi/viewcontent.cgi?article=1229&context=econ_wpapers |
Publicador |
DigitalCommons@UConn |
Fonte |
Economics Working Papers |
Palavras-Chave | #Economics |
Tipo |
text |