Ball, Laurence M. (contributor); … - 2003 - [Elektronische Ressource]
monetary policy.
5 OPTIMAL POLICY WITH DEMAND AND
PRODUCTIVITY SHOCKS
We now turn to our central question: what is the optimal …:
Proposition 3 For an economy that experiences shocks to demand, productivity, and
markups, optimal monetary policy can be … response to shocks to productivity and aggregate demand,
optimal policy is price level targeting. Base drift in the price level …