کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
5098500 | 1478700 | 2014 | 22 صفحه PDF | دانلود رایگان |
عنوان انگلیسی مقاله ISI
Optimal discretionary monetary policy in a micro-founded model with a zero lower bound on nominal interest rate
ترجمه فارسی عنوان
سیاست پولی اختیاری مطلوب در یک مدل مبتنی بر میکرو پایه با حد پایین صفر بر نرخ بهره اسمی
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کلمات کلیدی
موضوعات مرتبط
مهندسی و علوم پایه
ریاضیات
کنترل و بهینه سازی
چکیده انگلیسی
This paper investigates optimal discretionary monetary policy under the zero lower bound on the nominal interest rate (ZLB) in the case of a distorted steady state due to monopoly and taxation. Solving a fully nonlinear micro-founded (FNL) model using a global method, I find that the central bank in a more distorted economy would cut the interest rate less aggressively under a particularly adverse demand shock. This occurs because inflation and nominal interest rates are higher on average, making the ZLB less likely to bind and causing the economy to escape from the ZLB sooner. However, the social planner would choose the optimal inflation rate of approximately zero. The result emerges because the unconditional benefit of avoiding the ZLB is not big enough to offset the cost of higher relative price dispersion when inflation is significantly positive. In addition, I show that the conventional linear-quadratic (LQ) method is inaccurate in the case of a sufficiently distorted steady state.
ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Journal of Economic Dynamics and Control - Volume 45, August 2014, Pages 44-65
Journal: Journal of Economic Dynamics and Control - Volume 45, August 2014, Pages 44-65
نویسندگان
Phuong V. Ngo,