Optimal Monetary Policy in a Model with Habit Formation

@inproceedings{Fuhrer2000OptimalMP,
  title={Optimal Monetary Policy in a Model with Habit Formation},
  author={Jeffrey C. Fuhrer},
  year={2000}
}
A numberof recentpapershave exploredmonetarypolicy options,including inflationtargetingandinflation forecasttargeting(notablySvensson(1999a,1999b, 2000))andprice level targeting(Wolman2000,Batini andYates1999,Blinder 1999). Most papersexplore“optimal” monetarypolicy in thecontext of a single model.However, a numberof conclusionsmadein theliteraturedependstrongly on themodelspecificationused.In addition,mostpapershave usedtheefficient policy frontier conceptto defineoptimal monetarypolicy. This… CONTINUE READING

From This Paper

Figures, tables, results, connections, and topics extracted from this paper.
10 Extracted Citations
6 Extracted References
Similar Papers

Referenced Papers

Publications referenced by this paper.
Showing 1-6 of 6 references

Consumption,Income,and InterestRates:ReinterpretingtheTime SeriesEvidence

  • Campbell, JohnY. andMankiw, N. Gregory
  • 1999

Rulesfor MonetaryPolicy,

  • Williams, John, “Simple
  • FinanceandEconomics DiscussionSeries…
  • 1999

S.,“MonetaryPolicy in aLow InflationEnvironment:Comment

  • PrincetonUniversityPress, 1999. Blinder, Alan
  • 1999

andNelson,Edward, “An Optimizing IS-LM Specification for MonetaryPolicy andBusinessCycleAnalysis”,Journal of Money

  • McCallum, BennetT
  • Credit andBanking,
  • 1999

Policy Rulesfor Inflation Targeting,” in JohnB. Taylor, ed.,MonetaryPolicy Rules, Chicago:Universityof ChicagoPressandNBER,1998

  • Rudebusch, Glenn, Svensson, E Lars
  • 1998

andMoore,GeorgeR., “MonetaryPolicy Trade-Ofs andthe CorrelationBetweenNominal InterestRatesandRealOutput

  • Fuhrer, C Jefrey
  • American EconomicReview,
  • 1995

Similar Papers

Loading similar papers…