Similar Search Results

Optimal Monetary Policy When Agents are Learning

Molnar, Krisztina - 2013

We derive the optimal monetary policy in a sticky price model when private agents follow adaptive learning. We show … order to facilitate private sector learning and thus ease the future intratemporal inflation-output gap trade-offs. The … policy recommendation is robust: the welfare loss entailed by the optimal policy under learning if the private sector …

Persistent link: https://www.econbiz.de/10013094668

Understanding Firms' Inflation Expectations Using the Bank of Canada's Business Outlook Survey

Richards, Simone - 2016

Inflation expectations are a key determinant of actual and future inflation and thus matter for the conduct of monetary policy. We study how firms form their inflation expectations using quarterly firm-level data from the Bank of Canada's Business Outlook Survey, spanning the 2001 to 2015...

Persistent link: https://www.econbiz.de/10012979664

The Effect of Unconventional Fiscal Policy on Consumption Expenditure

D'Acunto, Francesco - 2016

Unconventional fiscal policy uses announcements of future increases in consumption taxes to generate inflation expectations and accelerate consumption expenditure. It is budget neutral and time consistent. We exploit a unique natural experiment for an empirical test of the effectiveness of...

Persistent link: https://www.econbiz.de/10012981297

Is the Anchoring of Consumers' Inflation Expectations Shaped by Inflation Experience?

Dräger, Lena - 2018

In this paper, we explore the degree of anchoring of consumers' individual long-run inflation expectations utilizing the University of Michigan Survey of Consumer's rotating panel micro-structure. Our results indicate that long-run inflation expectations became more anchored over the last...

Persistent link: https://www.econbiz.de/10012915565

Unconventional Fiscal Policy, Inflation Expectations, and Consumption Expenditure

D'Acunto, Francesco - 2016

Unconventional fiscal policies incentivize households to accelerate consumption by generating future consumer price ination, and offer an alternative to unconventional monetary policy (Correia et al. (2013)). We use a natural experiment to study the causal effect of unconventional fiscal...

Persistent link: https://www.econbiz.de/10012995195

Unconventional Fiscal Policy

D'Acunto, Francesco; Hoang, Daniel; Weber, Michael - 2021

Unconventional fiscal policy uses announcements of future increases in consumption taxes to generate inflation expectations and accelerate consumption expenditure. It is budget neutral and time consistent. We provide preliminary evidence for the effectiveness of such policies using changes in...

Persistent link: https://www.econbiz.de/10013315437

Using Survey Data on Inflation Expectations in the Estimation of Learning and Rational Expectations Models

Ormeno, Arturo - 2011

when solved under the assumptions of Rational Expectations and learning. This information serves as an additional moment … restriction and helps to determine the forecasting model for inflation that agents use under learning. My results reveal that the … predictive power of this model is improved when using both survey data and an admissible learning rule for the formation of …

Persistent link: https://www.econbiz.de/10013120910

On the Perils of Stabilizing Prices When Agents are Learning

Mele, Antonio - 2015

losses are outweighed by short term gains from the learning phase …

Persistent link: https://www.econbiz.de/10013028904

Leaning Against Housing Prices as Robustly Optimal Monetary Policy

Adam, Klaus - 2018

We analytically characterize optimal monetary policy for an augmented New Keynesian model with a housing sector. In a setting where the private sector has rational expectations about future housing prices and inflation, optimal monetary policy can be characterized without making reference to...

Persistent link: https://www.econbiz.de/10012914954

Monetary Policy with Diverse Private Expectations

Kurz, Mordecai - 2015

We study the impact of diverse beliefs on conduct of monetary policy. We use a New Keynesian Model solved with a quadratic approximation. Aggregation renders the belief distribution an aggregate state variable. Diverse expectations change standard results about a smooth trade-off between...

Persistent link: https://www.econbiz.de/10013024741