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Optimal Monetary Policy [PDF]

open access: possibleSSRN Electronic Journal, 2000
Summary: Optimal monetary policy maximizes the welfare of a representative agent, given frictions in the economic environment. Constructing a model with two sets of frictions --- costly price adjustment by imperfectly competitive firms and costly exchange of wealth for goods --- we find optimal monetary policy is governed by two familiar principles ...
Aubhik Khan   +2 more
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Monetary policy

Journal of the Staple Inn Actuarial Society, 1953
The proper functioning of a present-day economic system is dependent upon money and prices. This is particularly the case when a large part of the economy is based on private enterprise.For many years economic text-books have stated the three functions of money to be (1) a means of payment, (2) a store of value and (3) a unit of account.
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Overconfidence in Monetary Theory and Monetary Policy

2001
In this chapter we argue that when it comes to present-day monetary theory and policy, economists suffer from myopia and are prone to herd behaviour. As a result, too many economists give too much weight to actual economic developments which can have an excessive impact on economic theory and policy.
Brakman, S.   +2 more
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Monetary Policy in the Media [PDF]

open access: possibleSSRN Electronic Journal, 2006
Just like private companies depend crucially on their ability to reach customers, policymakers must communicate with private agents to be successful—and much of this communication is channeled through the media. This is especially true for central banks, which need to build credibility among the general public.
Berger, Helge   +2 more
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The Monetary Policy Model [PDF]

open access: possibleBusiness Economics, 2006
Most monetary economists today conduct their analysis within some version of a rational expectations model. A well-defined equilibrium in such a model requires that the private sector understand policy goals and the policymakers' model of the economy.
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Robust Monetary Policy [PDF]

open access: possibleJournal of Information Systems and Operation Management, 2008
While there is uncertainty about the data that enter into economic models and about the parameters that govern economic models, the fact that economists often approach macroeconomic data armed with different models of the economy suggests that uncertainty, or ambiguity, about the model could also be potentially important.
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