Title of article
Imperfect information,multipleshocks,andpolicy’ssignalingrole
Author/Authors
Leon Berkelmans، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2011
Pages
14
From page
373
To page
386
Abstract
In multipleshockmodels,whenagentshaveimperfectinformationtheyattemptto
infer ashock’stype,inadditiontoitssize.Inthisenvironment,monetarypolicyplays
an importantsignalingrole.Thispaperhighlightsthissignalingrolebyshowingthat
conclusionsfromimperfectinformationmonetarymodelsaresensitivetothenumber
of shocksincluded.Withmultipleshocks,contractionarymonetarypolicycaninitially
increaseinflationanddelaytheeventualdisinflation.Moreover,multipleshockscan
result indestabilizingpriceflexibility,whileoptimalpolicy’sresponsetooneshock
will dependontheexistenceofothershocks,contrarytoatypicallinear-quadratic
framework.
Journal title
Journal of Monetary Economics
Serial Year
2011
Journal title
Journal of Monetary Economics
Record number
846477
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