Optimal time-invariant monetary policy
This paper investigates how best to determine time-invariant policy rules in macroeconomic models with forward-looking constraints, where fully optimal policy is known to be time-inconsistent. It proposes a new 'coefficient optimisation' approach that improves upon the timeless perspectiv...
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| Format: | Working paper |
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University of Oxford
2009
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| _version_ | 1797069402515963904 |
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| author | Brendon, C |
| author_facet | Brendon, C |
| author_sort | Brendon, C |
| collection | OXFORD |
| description | This paper investigates how best to determine time-invariant policy rules in macroeconomic models with forward-looking constraints, where fully optimal policy is known to be time-inconsistent. It proposes a new 'coefficient optimisation' approach that improves upon the timeless perspective method of Woodford (2003) in deterministic problems, and on average in stochastic problems, without resorting to asymptotic ('unconditional') loss comparisons. |
| first_indexed | 2024-03-06T22:23:55Z |
| format | Working paper |
| id | oxford-uuid:56039219-0b89-4abb-a688-d5f96ccd010a |
| institution | University of Oxford |
| last_indexed | 2024-03-06T22:23:55Z |
| publishDate | 2009 |
| publisher | University of Oxford |
| record_format | dspace |
| spelling | oxford-uuid:56039219-0b89-4abb-a688-d5f96ccd010a2022-03-26T16:47:39ZOptimal time-invariant monetary policyWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:56039219-0b89-4abb-a688-d5f96ccd010aSymplectic ElementsBulk import via SwordUniversity of Oxford2009Brendon, CThis paper investigates how best to determine time-invariant policy rules in macroeconomic models with forward-looking constraints, where fully optimal policy is known to be time-inconsistent. It proposes a new 'coefficient optimisation' approach that improves upon the timeless perspective method of Woodford (2003) in deterministic problems, and on average in stochastic problems, without resorting to asymptotic ('unconditional') loss comparisons. |
| spellingShingle | Brendon, C Optimal time-invariant monetary policy |
| title | Optimal time-invariant monetary policy |
| title_full | Optimal time-invariant monetary policy |
| title_fullStr | Optimal time-invariant monetary policy |
| title_full_unstemmed | Optimal time-invariant monetary policy |
| title_short | Optimal time-invariant monetary policy |
| title_sort | optimal time invariant monetary policy |
| work_keys_str_mv | AT brendonc optimaltimeinvariantmonetarypolicy |