Solution of RE Models with Anticipated Shocks and Optimal Policy

The purpose of this paper is to solve linear dynamic rational expectations models with anticipated shocks by using the generalized Schur decomposition method. We also determine the optimal unrestricted and restricted policy responses to temporary as well as permanent shocks which both are anticipated by the public. In particular, our method is useful for the analysis of optimal monetary policy in New Keynesian dynamic general equilibrium models.

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Year of publication:	2007
Authors:	Wohltmann, Hans-Werner ; Winkler, Roland C.
Publisher:	Kiel : Kiel University, Department of Economics
Subject:	Ungleichgewichtstheorie \| Dynamisches Gleichgewicht \| Allgemeines Gleichgewicht \| Schock \| Rationale Erwartung \| Dekompositionsverfahren \| Geldpolitik \| Theorie \| Anticipated Shocks \| Optimal Monetary Policy \| Rational Expectations \| Generalized Schur Decomposition

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Series:	Economics Working Paper ; 2007-32
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	556825926 [GVK] hdl:10419/22048 [Handle] RePEc:zbw:cauewp:6877 [RePEc]
Classification:	E52 - Monetary Policy (Targets, Instruments, and Effects) ; C61 - Optimization Techniques; Programming Models; Dynamic Analysis ; C32 - Time-Series Models
Source:	EconStor

Persistent link: https://ebvufind01.dmz1.zbw.eu/10010296296