Optimal Inflation Stabilization in a Medium-Scale Macroeconomic Model

  title={Optimal Inflation Stabilization in a Medium-Scale Macroeconomic Model},
  author={Stephanie Schmitt - Groh{\'e} Mart́ın Uribe},
  • Stephanie Schmitt - Grohé Mart́ın Uribe
  • Published 2005
What is the optimal monetary policy, and how can the central bank implement it? Both questions have been extensively studied, but always in the context of simple theoretical structures, which by design are limited in their ability to account for actual observed business cycle fluctuations. This article seeks to characterize optimal monetary policy and its implementation using a medium-scale, empirically plausible model of the U.S. business cycle. The model we consider is the one developed in… CONTINUE READING
Highly Cited
This paper has 41 citations. REVIEW CITATIONS

From This Paper

Figures, tables, and topics from this paper.


Publications citing this paper.
Showing 1-10 of 32 extracted citations

Optimal Monetary and Fiscal Policy for Small Open and Emerging Economies

Angelo Marsiglia Fasolo
View 20 Excerpts
Highly Influenced

Optimal Monetary Stabilization Policy

View 5 Excerpts
Highly Influenced

Trend Growth and the Dynamic Effects of Government Spending

Mewael F. Tesfaselassie
View 3 Excerpts
Highly Influenced

Money Talks and Matters : Three Essays on the Theory of Monetary Policy

Herr Dipl, Vw Christian Stoltenberg, +21 authors Marco A
View 8 Excerpts
Highly Influenced

Monetary Policy and Welfare in a Currency Union

Lucio D’Aguanno
View 1 Excerpt

The Macroeconomics of Trend Inflation

Guido Ascari, Argia M. Sbordone
View 2 Excerpts


Publications referenced by this paper.
Showing 1-10 of 25 references

Labor Market Matching, Labor Market Participation and Aggregate Business Cycles: Theory and Structural Evidence for the United States.

M. Ravn
October. Florence, • 2005
View 11 Excerpts
Highly Influenced

A search for a structural Phillips curve

Timothy Cogley, Argia M. Sbordone
View 8 Excerpts
Highly Influenced

Optimal fiscal and monetary policy under imperfect competition

Stephanie Schmitt-Groh
View 14 Excerpts
Highly Influenced

Discretion versus Policy Rules in Practice

Joachim Grammig, K. Kehrle
View 2 Excerpts
Highly Influenced

The Dynamic Effects of Neutral and InvestmentSpecific Technology Shocks.

J.D.M. Fisher
View 3 Excerpts
Highly Influenced

Some Evidence on the Importance of Sticky Prices.

M. Bils, P. Klenow
Journal of Political Economy • 2004
View 2 Excerpts
Highly Influenced

Menu Costs and Phillips Curves

View 1 Excerpt
Highly Influenced

Staggered Prices in a Utility-Maximizing Framework.

G. A. Calvo
Journal of Monetary Economics • 1983
View 3 Excerpts
Highly Influenced

Similar Papers

Loading similar papers…