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|Title:||Solution of RE Models with Anticipated Shocks and Optimal Policy |
Winkler, Roland C.
|Issue Date:||2007 |
|Series/Report no.:||Economics working paper / Christian-Albrechts-Universität Kiel, Department of Economics 2007,32|
|Abstract:||The purpose of this paper is to solve linear dynamic rational expectations models with anticipated shocks by using the generalized Schur decomposition method. We also determine the optimal unrestricted and restricted policy responses to temporary as well as permanent shocks which both are anticipated by the public. In particular, our method is useful for the analysis of optimal monetary policy in New Keynesian dynamic general equilibrium models.|
Optimal Monetary Policy
Generalized Schur Decomposition
|Document Type:||Working Paper|
|Appears in Collections:||Economics Working Papers, Department of Economics, CAU Kiel|
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