Discretion vs. timeless perspective under model-consistent stabilization objectives

Recent literature has reported situations in which discretion dominates timeless perspective in the presence of elements that reduce the slope of the New Keynesian Phillips curve. Considering a model-consistent welfare metric inhibits this mechanism in the standard New Keynesian framework.

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Year of publication:	2014
Authors:	Petrella, Ivan ; Rossi, Raffaele ; Santoro, Emiliano
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 122.2014, 1, p. 84-88
Publisher:	Elsevier
Subject:	Monetary policy \| Discretion \| Timeless perspective \| Loss of social welfare

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Type of publication:	Article
Classification:	E23 - Production ; E32 - Business Fluctuations; Cycles ; E52 - Monetary Policy (Targets, Instruments, and Effects)
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010729465