Please use this identifier to cite or link to this item:
https://hdl.handle.net/10419/39532
Full metadata record
DC Field | Value | Language |
---|---|---|
dc.contributor.author | Wieland, Volker | en |
dc.date.accessioned | 2010-09-01T09:47:24Z | - |
dc.date.available | 2010-09-01T09:47:24Z | - |
dc.date.issued | 1999 | - |
dc.identifier.uri | http://hdl.handle.net/10419/39532 | - |
dc.description.abstract | Since central banks have limited information concerning the transmission channel ofmonetary policy, they are faced with the difficult task of simultaneously controlling the policytarget and estimating the impact of policy actions. A tradeoff between estimation and controlarises because policy actions influence estimation and provide information which may improvefuture performance. I analyze this tradeoff in a simple model with parameter uncertainty andconduct dynamic simulations of the policymaker's decision problem in the presence of the typeof uncertainties that arose in the wake of German reunification. A policy that separates learningfrom control may induce a persistent upward bias in money growth and inflation, just as observedafter unification. In contrast, the optimal learning strategy which exploits the tradeoff betweencontrol and estimation significantly improves stabilization performance and reduces the likelihoodof inflationary bias. | en |
dc.language.iso | ger | en |
dc.publisher | |aRheinische Friedrich-Wilhelms-Universität Bonn, Zentrum für Europäische Integrationsforschung (ZEI) |cBonn | en |
dc.relation.ispartofseries | |aZEI Working Paper |xB 09-1999 | en |
dc.subject.jel | E52 | en |
dc.subject.jel | E40 | en |
dc.subject.jel | D83 | en |
dc.subject.jel | C44 | en |
dc.subject.ddc | 330 | en |
dc.subject.keyword | optimal control with unknown parameters | en |
dc.subject.keyword | Bayesian learning | en |
dc.subject.keyword | monetary policy | en |
dc.subject.keyword | structural change | en |
dc.subject.keyword | learning by doing | en |
dc.subject.keyword | inflation targeting | en |
dc.title | Monetary policy, parameter uncertainty and optimal learning | - |
dc.type | |aWorking Paper | en |
dc.identifier.ppn | 815776853 | en |
dc.rights | http://www.econstor.eu/dspace/Nutzungsbedingungen | en |
dc.identifier.repec | RePEc:zbw:zeiwps:B091999 | en |
Files in This Item:
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.