|
EconStor >
Stockholm School of Economics >
EFI - The Economic Research Institute, Stockholm School of Economics >
SSE/EFI Working Paper Series in Economics and Finance, EFI - The Economic Research Institute, Stockholm School of Economics >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/56236
|
| | |
| Title: | | New-Keynesian models and monetary policy: A reexamination of the stylized facts  |
| Authors: | | Söderström, Ulf Söderlind, Paul Vredin, Anders |
| Issue Date: | | 2003 |
| Series/Report no.: | | SSE/EFI Working Paper Series in Economics and Finance 511 |
| Abstract: | | Using an empirical New-Keynesian model with optimal discretionary monetary policy, we calibrate key parameters - the central bank's preference parameters; the degree of forward-looking behavior in the determination of inflation and output; and the variances of inflation and output shocks - to match some broad characteristics of U.S. data. Our preferred parameterizations all imply a small concern for output stability but a large preference for interest rate smoothing, and a small degree of forward-looking behavior in price-setting but a large degree of forward-looking in the determination of output. We provide some intuition for these results and discuss their consequences for practical monetary policy analysis. |
| Subjects: | | Interest rate smoothing central bank objectives forward-looking behavior |
| JEL: | | E52 E58 |
| Document Type: | | Working Paper |
| Appears in Collections: | | SSE/EFI Working Paper Series in Economics and Finance, EFI - The Economic Research Institute, Stockholm School of Economics
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/56236
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|