Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/211942 
Authors: 
Year of Publication: 
2003
Series/Report no.: 
Bank of Finland Discussion Papers No. 9/2003
Publisher: 
Bank of Finland, Helsinki
Abstract: 
This paper studies the gain from using money as an indicator when monetary policy in made under data uncertainty.We use a forward and backward looking model, calibrated for the euro area.The policymaker cannot completely observe the state of the economy. Money reveals some of the private sector's information to the policymaker, especially if there is a forward looking element in money demand.We show that observing money can considerably reduce the loss that is due to incomplete information.However, taking also into account other financial market data could decrease the marginal importance of money as an indicator.
Subjects: 
monetary policy
partial information
money
monetary aggregates
euro area
JEL: 
E52
E58
E47
Persistent Identifier of the first edition: 
ISBN: 
952-462-047-2
Document Type: 
Working Paper

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