A new approach for modelling and understanding optimal monetary policy

The coefficients of Taylor's [Taylor, J.B., 1993. Discretion versus policy rules in practice. Carnegie Rochester Conference Series on Public Policy 39, 195-214] monetary policy rule can be seen as portfolio weights. Their optimal values are derived by adapting Merton's [Merton, R.C., 1971. Optimum consumption and portfolio rules in a continuous-time model. Journal of Economic Theory 3, 373-413] asset allocation model.

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Year of publication:	2008
Authors:	Romaniuk, Katarzyna
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 100.2008, 1, p. 13-15
Publisher:	Elsevier

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005361773