Get Imperfect Knowledge and Monetary Policy (The Stone Lectures PDF

By Vi­tor Gaspar, Otmar Issing, Oreste Tristani, David Vestin

ISBN-10: 0511169159

ISBN-13: 9780511169151

ISBN-10: 0521671078

ISBN-13: 9780521671071

ISBN-10: 0521854865

ISBN-13: 9780521854863

Show description

Read Online or Download Imperfect Knowledge and Monetary Policy (The Stone Lectures in Economics) PDF

Best economy books

Schwarzbuch Kapitalismus. Ein Abgesang auf die by Robert Kurz PDF

Der Kapitalisinus treibt auf eine ausweglose scenario zu. Der Lebensstandard breiter Bevölke-rungsschichten sinkt, die Arbeitslosigkeit nirnnit zu. der Ausweg in die Dienstleistungsgesellschaft erweist sich als phantasm. Die Marktwirtschaft wird mit ihren Produktivitätssprüngen - Automation und Globalisierung - nicht mehr fertig.

India: The Growth Imperative by PDF

This document is the fabricated from a fifteen-month lengthy venture through the McKinsey worldwide Institute, operating in collaboration with McKinsey's India place of work, at the monetary functionality of India.

Floor Brouwer, C. Martijn van der Heide's Multifunctional Rural Land Management: Economics and PDF

The expanding call for for rural land and its ordinary assets is developing pageant and conflicts. Many events, together with farmers, nature conservationists, rural citizens and travelers, compete for a similar area. specially in densely populated parts, agriculture, game, city and suburban development and infrastructure improvement exert a relentless strain on rural components.

Additional info for Imperfect Knowledge and Monetary Policy (The Stone Lectures in Economics)

Example text

The target rule hence coincides with optimal policy, and the rule-like element of this approach is represented by the central bank’s commitment to an inflation target and to an optimizing procedure which has to be employed in the actual pursuit of the target (Svensson, 1999b). More recently, Giannoni and Woodford (2002a, 2002b) and Svensson and Woodford (2003) have proposed a class of robust, optimal, explicit instrument rules. As well as minimizing the central bank’s loss function given the structure of the economy, such rules are robust to residual uncertainty.

In order to make progress, policy makers have to complement the available knowledge of modelbased results with their best judgment. Decisions will partly be guided by general and robust theoretical results, and partly be informed by the policy makers’ beliefs on the determinants and effects of a particular development. A limited reliance on judgmental elements is what allows the decision maker to act, based on information that is always too limited and knowledge that is always inadequate. If such elements were banned from policy making, any conscientious decision maker would always conclude that further results are needed before dealing with any practical problem.

4. They become, however, of second order when compared with the fundamental problem of how to avoid true inflation or deflation – that is, inflationary or deflationary spirals. It may be argued that prolonged inflation and deflation are relatively rare events, so central bankers can normally act based mainly on a concern for inflation volatility. This is, however, only known ex post in practical monetary policy making. Ex ante, any small and temporary inflationary shock can potentially reveal itself as the source of an inflationary spiral.

Download PDF sample

Imperfect Knowledge and Monetary Policy (The Stone Lectures in Economics) by Vi­tor Gaspar, Otmar Issing, Oreste Tristani, David Vestin

by Jeff

Rated 4.64 of 5 – based on 36 votes