Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/212445 
Erscheinungsjahr: 
2019
Schriftenreihe/Nr.: 
Bank of Finland Research Discussion Papers No. 11/2019
Verlag: 
Bank of Finland, Helsinki
Zusammenfassung: 
It is widely recognized that the policy objectives of fiscal and monetary policymakers usually have different time horizons, and this feature may not be captured by traditional econometric techniques. In this paper, we first decompose U.S macroeconomic data using a time-frequency domain technique, namely discrete wavelet analysis. We then model the behavior of the U.S. economy over each wavelet frequency range and use our estimated parameters to construct a tracking model. To illustrate the usefulness of this approach, we simulate jointly optimal fiscal and monetary policy with different short-term targets: an inflation target, a money growth target, an interest rate target, and a real exchange rate target. The results determine the reaction in fiscal and monetary policy that is required to achieve an inflation target in a low inflation environment, and when both fiscal and monetary policy are concerned with meeting certain economic growth objectives. The combination of wavelet decomposition in an optimal control framework can also provide a new approach to macroeconomic forecasting.
JEL: 
C61
C63
C88
E52
E61
F47
Persistent Identifier der Erstveröffentlichung: 
ISBN: 
978-952-323-279-2
Dokumentart: 
Working Paper

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