Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/56552
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dc.contributor.authorTillmann, Peteren_US
dc.date.accessioned2011-08-18en_US
dc.date.accessioned2012-04-04T13:55:37Z-
dc.date.available2012-04-04T13:55:37Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/56552-
dc.description.abstractThis paper shows that monetary policy should be delegated to a central bank that cross-checks optimal policy with information from the Taylor rule. Attaching some weight to deviations of the interest rate from the interest rate prescribed by the Taylor rule is beneficial if the central bank aims at optimally stabilizing inflation and output gap variability under discretion. Placing a weight on deviations from a simple Taylor rule increases the overall relative weight of inflation volatility in the effective loss function, which reduces the stabilization bias of discretionary monetary policy. The welfare-enhancing role of this modified loss function depends on the size of the stabilization bias, i.e. on the degree of persistence in the cost-push shock process, and the relevance of demand shocks. These results can be interpreted in terms of the optimal composition of monetary policy committees.en_US
dc.language.isoengen_US
dc.publisher|aUniv., Dep. of Business Administration & Economics |cMarburgen_US
dc.relation.ispartofseries|aJoint discussion paper series in economics |x32-2011en_US
dc.subject.jelE43en_US
dc.subject.jelE52en_US
dc.subject.ddc330en_US
dc.subject.keywordoptimal monetary policyen_US
dc.subject.keywordstabilization biasen_US
dc.subject.keywordmonetary policy delegationen_US
dc.subject.keywordrobustnessen_US
dc.subject.keywordTaylor ruleen_US
dc.subject.keywordmonetary policy committeeen_US
dc.subject.stwGeldpolitiken_US
dc.subject.stwTaylor-Regelen_US
dc.subject.stwDiskretionäre Politiken_US
dc.subject.stwKonjunkturpolitiken_US
dc.subject.stwInflationen_US
dc.subject.stwVolatilitäten_US
dc.subject.stwWohlfahrtseffekten_US
dc.subject.stwTheorieen_US
dc.titleCross-checking optimal monetary policy with information from the Taylor ruleen_US
dc.typeWorking Paperen_US
dc.identifier.ppn666313865en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US

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