EconStor >
Rheinische Friedrich-Wilhelms-Universität Bonn >
Zentrum für Europäische Integrationsforschung (ZEI), Universität Bonn >
ZEI Working Papers, Zentrum für Europäische Integrationsforschung, Universität Bonn >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/39532
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorWieland, Volkeren_US
dc.date.accessioned2010-09-01T09:47:24Z-
dc.date.available2010-09-01T09:47:24Z-
dc.date.issued1999en_US
dc.identifier.urihttp://hdl.handle.net/10419/39532-
dc.description.abstractSince central banks have limited information concerning the transmission channel of monetary policy, they are faced with the difficult task of simultaneously controlling the policy target and estimating the impact of policy actions. A tradeoff between estimation and control arises because policy actions influence estimation and provide information which may improve future performance. I analyze this tradeoff in a simple model with parameter uncertainty and conduct dynamic simulations of the policymaker's decision problem in the presence of the type of uncertainties that arose in the wake of German reunification. A policy that separates learning from control may induce a persistent upward bias in money growth and inflation, just as observed after unification. In contrast, the optimal learning strategy which exploits the tradeoff between control and estimation significantly improves stabilization performance and reduces the likelihood of inflationary bias.-
dc.language.isogeren_US
dc.publisherZEI Bonnen_US
dc.relation.ispartofseriesZEI working paper B 09-1999en_US
dc.subject.jelE52-
dc.subject.jelE40-
dc.subject.jelD83-
dc.subject.jelC44-
dc.subject.ddc330en_US
dc.subject.keywordoptimal control with unknown parameters-
dc.subject.keywordBayesian learning-
dc.subject.keywordmonetary policy-
dc.subject.keywordstructural change-
dc.subject.keywordlearning by doing-
dc.subject.keywordinflation targeting-
dc.titleMonetary policy, parameter uncertainty and optimal learningen_US
dc.typeWorking Paperen_US
dc.identifier.ppn269587624en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:zeiwps:B091999-
Appears in Collections:ZEI Working Papers, Zentrum für Europäische Integrationsforschung, Universität Bonn

Files in This Item:
File Description SizeFormat
269587624.pdf379.08 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.