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monetary policy and inflation

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Written by:

Maria W


Date added:

February 8, 2012








No of pages / words:

37 / 10244


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2187 times


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We derive a closed-form solution for the model, and analyze its properties under various parameter values. The model is used to explore topics relating to the e ects of disinflationary monetary policies and inflation persistence. In particular, we employ the model to illustrate and assess the critique that standard sticky-price models generate counterfactual predictions for the e ects of monetary policy...
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Mailing address: Mail Stop 80, 20th and C Streets NW, Washington, DC 20551. E-mail: jeremy.b.rudd@frb.gov. E-mail: karl.whelan@centralbank.ie. We thank Gregory Mankiw and Olivier Blanchard for useful dis- cussions on several of the topics considered here. The views expressed in this paper are our own, and do not necessarily reflect the views of the Board of Governors, the sta of the Federal Reserve System, or the Central Bank of Ireland...
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