Performance of monetary policy with internal central bank forecasting

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 homogenous. In this paper, we study the implications of heterogeneity in forecasts of the central bank and private agents for the performance of interest rules from the learning viewpoint.

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Year of publication:	2002
Authors:	Honkapohja, Seppo ; Mitra, Kaushik
Publisher:	Frankfurt a. M. : European Central Bank (ECB)
Subject:	Adaptive learning \| heterogeneity \| monetary policy \| stability

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Series:	ECB Working Paper ; 127
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	hdl:10419/152561 [Handle] RePEc:ecb:ecbwps:20020127 [RePEc]
Classification:	E52 - Monetary Policy (Targets, Instruments, and Effects) ; E31 - Price Level; Inflation; Deflation ; D84 - Expectations; Speculations
Source:	EconStor

Persistent link: https://www.econbiz.de/10011604173