Browsing by Subject "Taylor rules"

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Implementing Optimal Monetary Policy in New-Keynesian Models with Inertia

Evans, George W., 1949-; McGough, Bruce (University of Oregon, Dept of Economics, 2006-06-03)

We consider optimal monetary policy in New Keynesian models with inertia. First order conditions, which we call the MJB-alternative, are found to improve upon the timeless perspective. The MJB-alternative is shown to be ...
Optimal Constrained Interest-rate Rules

Evans, George W., 1949-; McGough, Bruce (University of Oregon, Dept of Economics, 2005-05-19)

We show that if policy-makers compute the optimal unconstrained interest-rate rule within a Taylor-type class, they may be led to rules that generate indeterminacy and/or instability under learning. This problem is compounded ...