Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/64475 
Autor:innen: 
Erscheinungsjahr: 
2011
Schriftenreihe/Nr.: 
Working Paper No. 2011-15
Verlag: 
The University of Utah, Department of Economics, Salt Lake City, UT
Zusammenfassung: 
Carlin and Soskice (2005) advocate a 3-equation model of stabilization policy, the IS-PC-MR model. Their third equation is the monetary reaction rule MR derived by assuming that governments have performance objectives, but are constrained by an augmented Phillips curve PC. Central banks achieve their preferred outcome by setting interest rates along an IS curve. We simplify their model to 2 equations (PC and MR), developing a state space econometric specification of this solution, and adding a random walk model of unobserved potential growth. Applying this model to a panel of North Atlantic countries, we find it historically consistent with an inflation target of about 4%. Significant interdependence is found in the between-country covariance of inflation and growth shocks, but not of potential output. Beginning with the approximation that expected inflation is the most recent observation, we extend the model to introduce alternative assumptions about expectations with mixed results, support for the stickyprice model, but doubts about activist policy.
Schlagwörter: 
new Keynesian policy
inflation targets
expectations
JEL: 
E61
E63
Dokumentart: 
Working Paper

Datei(en):
Datei
Größe
350.27 kB





Publikationen in EconStor sind urheberrechtlich geschützt.