Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5062332 | Economics Letters | 2007 | 7 Pages |
Abstract
This paper provides a useful method to solve optimal simple rules under risk sensitive preference in macromodels with forward looking behavior. An application to a new Keynesian model with lagged dynamics is offered and risk sensitive preference is found to amplify the policy responses.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Mingjun Zhao,