| Description |
1 online resource (164 pages). |
| Series |
Schriften zur Wirtschaftstheorie und Wirtschaftspolitik, 1433-1519 ; Bd. 44 |
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Schriften zur Wirtschaftstheorie und Wirtschaftspolitik ; Bd. 44.
1433-1519
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| Note |
Print version record. |
| Contents |
Table of Contents; List of Figures and Tables 11; List of Symbols 13; I. Introduction 17; II. Monetary policy design and criteria for assessing monetary policy rules 21; 1. Monetary policy issues 21; 1.1. The case for rules rather than discretion 23; 1.1.1. Analytical distinction between rules and discretion 23; 1.1.2. The problem of dynamic inconsistency 24; 1.1.3. Advantages of central bank commitment to a monetary policy rule 25; 1.2. Design of monetary policy rules 26; 1.2.1. Rules, instruments and targets 28; 1.2.2. Choice of instruments 30; 1.2.3. Choice of target variables 31. |
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2. Criteria for assessing monetary policy rules 372.1. Operationality/Simplicity 38; 2.2. Local determinacy of rational-expectations equilibrium and monetary policy analysis 41; 2.2.1. An overview 41; 2.2.2. Presenting the criterion 42; 2.2.3. Determinacy and reactions to shocks 43; 2.3. The Taylor principle 45; 3. Preliminary summary 49; III. A New Keynesian model with endogenous capital with adjustment costs 51; 1. New Keynesian framework: an overview 52; 2. Modelling capital and investment 55; 3. The model with endogenous capital and adjustment costs 60. |
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3.1. Household utility function and optimality conditions 603.2. The "IS sector" 63; 3.3. Capital accumulation adjustment costs 64; 3.4. Inflation and real wage equations under sticky prices and wages 66; 3.5. Interest-rate rule specifications 67; 4. Determinacy analysis 68; 4.1. Calibration 69; 4.2. Determinacy and the Taylor principle: some numerical examples 72; 4.2.1. Active rule 74; 4.2.2. Passive rule 75; 4.2.3. Interest-rate rule response coefficient values and determinacy: a global perspective 77; 5. Preliminary summary of results 79; IV. Shock impulse responses 81. |
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1. Some preliminary remarks on the adjustment mechanisms in the system 811.1. Monetary policy unit shock 82; 1.2. Technology unit shock 84; 1.3. Consumption preference unit shock 86; 2. Active rule 87; 2.1. The case of inflation-targeting only 87; 2.1.1. Monetary policy unit shock 88; 2.1.2. Technology unit shock 92; 2.1.3. Consumption preference unit shock 95; 2.2. The case of inflation- and output-targeting 98; 2.2.1. Monetary policy unit shock 98; 2.2.2. Technology unit shock 101; 2.2.3. Consumption preference unit shock 104. |
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2.3. The case of inflation- and output-targeting with interest-rate smoothing 1072.3.1. Monetary policy unit shock 107; 2.3.2. Technology unit shock 110; 2.3.3. Consumption preference unit shock 113; 3. Passive rule 116; 3.1. The case of inflation-targeting only 116; 3.2. The case of inflation- and output-targeting 116; 3.2.1. Monetary policy unit shock 117; 3.2.2. Technology unit shock 120; 3.2.3. Consumption preference unit shock 123; 3.3. The case of inflation- and output-targeting with interest-rate smoothing 126; 3.3.1. Monetary policy unit shock 126; 3.3.2. Technology unit shock 129. |
| Note |
3.3.3. Consumption preference unit shock 132. |
| Bibliography |
Includes bibliographical references (pages 145-158). |
| Subject |
Interest rates.
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Monetary policy.
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Keynesian economics.
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BUSINESS & ECONOMICS -- Money & Monetary Policy.
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Interest rates. (OCoLC)fst00976178
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Keynesian economics. (OCoLC)fst00987025
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Monetary policy. (OCoLC)fst01025230
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| Other Form: |
Print version: Pavlova, Elena. Interest-Rate Rules in a New Keynesian Framework with Investment. Frankfurt : Lang, Peter, GmbH, Internationaler Verlag der Wissenschaften, ©2012 9783631611289 |
| ISBN |
9783653014440 |
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3653014441 |
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9783631611289 (hbk.) |
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3631611285 |
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