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 perspective method of...
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| Format: | Working paper |
| Language: | English |
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Department of Economics (University of Oxford)
2009
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| _version_ | 1797077918973689856 |
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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 | 2024-03-07T00:24:56Z |
| format | Working paper |
| id | oxford-uuid:7dd1b19f-78a4-4f92-9ba2-2160c43033a9 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T00:24:56Z |
| publishDate | 2009 |
| publisher | Department of Economics (University of Oxford) |
| record_format | dspace |
| spelling | oxford-uuid:7dd1b19f-78a4-4f92-9ba2-2160c43033a92022-03-26T21:06:06ZOptimal Time-Invariant Monetary Policy.Working paperhttp://purl.org/coar/resource_type/c_8042uuid:7dd1b19f-78a4-4f92-9ba2-2160c43033a9EnglishDepartment of Economics - ePrintsDepartment of Economics (University of Oxford)2009Brendon, 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 |