Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/37341
Authors: 
Wohltmann, Hans-Werner
Winkler, Roland C.
Year of Publication: 
2010
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Advances of New Keynesian Macroeconomics G2-V3
Abstract: 
This paper evaluates the performance of optimal simple policy rules in the presence of news shocks. It is shown that the inclusion of forward-looking elements enhances the performance of simple optimized interest rate rules when agents learn about future disturbances in advance. We provide a rationale for this result by demonstrating that, if shocks are news shocks, the optimal unrestricted control rule under commitment contains as a basic principle a forward-looking element.
Subjects: 
News Shocks
Optimal Simple Rules
Optimal Monetary Policy
JEL: 
E32
E52
E58
Document Type: 
Conference Paper

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