Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83946
Authors: 
Matthews, Kent
Meenagh, David
Minford, Patrick
Webb, Bruce
Year of Publication: 
2006
Series/Report no.: 
Cardiff Economics Working Papers E2006/12
Abstract: 
Macro models generally assume away heterogeneous welfare in assessing policies. We investigate here within two aggregative models ó one with a representative agent, the other a long-used forecasting model of the UK ó whether allowing for di§erences in welfare functions (speciÖcally between those in continuous employment and those with frequent unemployment spells) alters the rankings of monetary policies. We Önd that it does but that a set of policies (money supply targeting implemented by money supply control) can be found that are robust in the sense of avoiding very poor outcomes for either of the two groups.
Subjects: 
Robustness
heterogenous welfare
money supply rules
interest rate setting
price level targeting
JEL: 
E52
E58
E61
Document Type: 
Working Paper

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