| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 965519 | Journal of Macroeconomics | 2012 | 8 Pages |
Abstract
⺠Analysis of optimal monetary policy under discretion when model is misspecified. ⺠New Keynesian model with costly loan production and shocks to collateral. ⺠Robustness implies more aggressive response to cost-push and financial shocks. ⺠Conflict between achieving instrument stability and robustness. ⺠Higher weight on interest smoothing implies greater deviation from rational expectations.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Rafael Gerke, Felix Hammermann, Vivien Lewis,