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Persistence, The Transmission Mechanism And Robust Monetary Policy
Author(s) -
Angeloni Ignazio,
Coenen Günter,
Smets Frank
Publication year - 2003
Publication title -
scottish journal of political economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.4
H-Index - 46
eISSN - 1467-9485
pISSN - 0036-9292
DOI - 10.1111/j.0036-9292.2003.05005006.x
Subject(s) - economics , monetary policy , persistence (discontinuity) , dynamic stochastic general equilibrium , monetary transmission mechanism , monetary economics , econometrics , mechanism (biology) , transmission (telecommunications) , macroeconomics , credit channel , inflation targeting , computer science , telecommunications , philosophy , geotechnical engineering , epistemology , engineering
In this paper we first explore the impact of nominal and real persistence on the transmission process of various shocks in an estimated DSGE model of the euro area. We then analyse its impact on optimal monetary policy and investigate the performance of various monetary policies when the policy maker is uncertain about the degree of nominal and real persistence.