Premium
Dérive optimale du niveau des prix quand il y a engagement dans le nouveau modèle keynésien canonique .
Author(s) -
Amano Robert,
Ambler Steve,
Shukayev Malik
Publication year - 2012
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.1540-5982.2012.01725.x
Subject(s) - commit , economics , new keynesian economics , monetary policy , inflation (cosmology) , rational expectations , function (biology) , monetary economics , inflation targeting , keynesian economics , price level , central bank , econometrics , macroeconomics , microeconomics , computer science , physics , database , evolutionary biology , theoretical physics , biology
In both the canonical and many extended versions of the New Keynesian model, optimal monetary policy under commitment implies price‐level stationarity as long as expectations are rational. We show that this is no longer the case if the central bank and private agents make decisions before observing current shocks. The optimal amount of price‐level drift in response to unexpected innovations to inflation is quantitatively important. This result has important implications for monetary policy, including the design of the optimal loss function for the central bank if it cannot commit to its future policies.