Performance of monetary policy with internal central bank forecasting

Kaushik Mitra, S Honkapohja

    Research output: Contribution to journalArticlepeer-review

    32 Citations (Scopus)

    Abstract

    Recent models of monetary policy have analyzed the desirability of different optimal and ad hoc interest rules under the restrictive assumption that forecasts of the private sector and the central bank are homogeneous. This paper studies the implications of heterogeneity in forecasting by the central bank and private agents for the performance of interest rules in a framework of econometric learning. (c) 2004 Elsevier B.V. All rights reserved.

    Original languageEnglish
    Pages (from-to)627-658
    Number of pages32
    JournalJournal of Economic Dynamics and Control
    Volume29
    Issue number4
    DOIs
    Publication statusPublished - Apr 2005

    Keywords

    • adaptive learning
    • stability
    • heterogeneity
    • monetary policy
    • INFLATION
    • RULES
    • EQUILIBRIA
    • STABILITY
    • CONVERGENCE
    • MODELS

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