Imperfect knowledge, inflation expectations, and monetary policy
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Imperfect knowledge, inflation expectations, and monetary policy

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Published by National Bureau of Economic Research in Cambridge, Mass .
Written in English

Subjects:

  • Monetary policy -- Econometric models,
  • Monetary policy -- Effect of inflation on -- Econometric models

Book details:

Edition Notes

StatementAthanasios Orphanides, John C. Williams.
SeriesNBER working paper series -- no. 9884., Working paper series (National Bureau of Economic Research) -- working paper no. 9884.
ContributionsWilliams, John C., National Bureau of Economic Research.
The Physical Object
Pagination39 p. :
Number of Pages39
ID Numbers
Open LibraryOL17615690M
OCLC/WorldCa52888707

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Imperfect Knowledge, Inflation Expectations, and Monetary Policy Athanasios Orphanides, John Williams. Chapter in NBER book The Inflation-Targeting Debate (), Ben S. Bernanke and Michael Woodford, editors (p. - ) Conference held January , Published in December by University of Chicago PressCited by: Request PDF | On Jan 1, , Athanasios Orphanides and others published Imperfect Knowledge, Inflation Expectations, and Monetary Policy | Find, read and cite all . "Imperfect knowledge, inflation expectations, and monetary policy," Working Paper Series , Federal Reserve Bank of San Francisco, revised Athanasios Orphanides & John C. Williams, "Imperfect Knowledge, Inflation Expectations, and Monetary Policy," NBER Working Papers , National Bureau of Economic Research, Inc. Imperfect Knowledge, Inflation Expectations, and Monetary Policy Athanasios Orphanides, John C. Williams. NBER Working Paper No. Issued in August NBER Program(s):Monetary Economics This paper investigates the role that imperfect knowledge about the structure of the economy plays in the formation of expectations, macroeconomic dynamics, and the efficient formulation of monetary policy.

Imperfect Knowledge, Inflation Expectations, and Monetary Policy Athanasios Orphanides*, John C. Williams** July Abstract: This paper investigates the role that imperfect knowledge about the structure of the economy plays in the formation of expectations, macroeconomic dynamics, and the efficient formulation of monetary policy. public forms expectations and policymakers must formulate and implement monetary policy. Using an estimated model of the U.S. economy, we show that monetary policy rules that would perform well under the assumption of rational expecta-tions can perform very poorly when we introduce imperfect knowledge. We then examine the performance of an easily. "Imperfect Knowledge, Inflation Expectations, and Monetary Policy," NBER Working Papers , National Bureau of Economic Research, Inc. Orphanides, Athanasios & Williams, John C., "Imperfect knowledge, inflation expectations, and monetary policy," CFS Working Paper Series /40, Center for Financial Studies (CFS). the rational expectations equilibrium with imperfect common knowledge and section 6 characterizes optimal monetary policy. A conclusion summarizes the main findings. 2 A simple Lucas-type model Consider a flexible price economy with a continuum of monopolistically com-petitive firms i 5[0,1] and a central bank that (imperfectly) controls nominal.

In this scenario, a monetary policy framework that can successfully anchor inflation expectations can reduce or eliminate persistence. To shed further light on the role of expectations this note briefly reviews: (1) factors that can lead to inflation persistence and how a monetary policy framework such as inflation targeting. Fiscal policy has no monetary consequences. Now suppose agents have imperfect knowledge, modeled as uncertainty about the long-term equilibrium level of in⁄ation and taxes. Interpret this as either fundamental uncertainty about the policy regime, or imperfect credibility about policy .   Finance and Economics Discussion Series: Imperfect Knowledge, Inflation Expectations, and Monetary Policy [Orphanides, Athanasios, Williams, John C., United States Federal Reserve Board] on *FREE* shipping on qualifying offers. Finance and Economics Discussion Series: Imperfect Knowledge, Inflation Expectations, and Monetary PolicyAuthor: Athanasios Orphanides, John C. Williams. Imperfect knowledge, inflation expectations, and monetary policy. and the efficient formulation of monetary policy. Economic agents rely on an adaptive learning technology to form expectations and continuously update their beliefs regarding the dynamic structure of the economy based on incoming data. The process of perpetual learning.