Title :
Money Policy in Dynamic Stochastic General Equilibrium Models
Author :
Liu, Yang ; Li, Li
Author_Institution :
Sch. of Econ., Central of China Normal Univ., Wuhan
Abstract :
By using the quarterly data of 1996-2005 in China, we use a dynamic stochastic general equilibrium modeling framework to compare the different design of monetary policy: an interest rate feedback rule and a money growth rule. Drawing on our econometric analysis, we argue that model, closed with interest rate feedback rule comes closer to the data. The paper also suggests to incorporate the sticky price property and fiscal policy to explain the economy better.
Keywords :
econometrics; economic indicators; stochastic processes; dynamic stochastic general equilibrium; econometric analysis; fiscal policy; interest rate feedback rule; monetary policy; money growth rule; sticky price property; Asia; Automatic control; Centralized control; Economic indicators; Feedback; Informatics; Macroeconomics; Microeconomics; Robotics and automation; Stochastic processes; Dynamic Stochastic General Equilibrium Model; MIU; Money Policy;
Conference_Titel :
Informatics in Control, Automation and Robotics, 2009. CAR '09. International Asia Conference on
Conference_Location :
Bangkok
Print_ISBN :
978-1-4244-3331-5
DOI :
10.1109/CAR.2009.103
