Kobayashi, Teruyoshi and Muto, Ichiro (2009): Expectational stability under non-zero trend inflation.
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This study examines the expectational stability of the rational expectation equilibria(REE) under Taylor rules when trend inflation is non-zero. We find that whether or not a higher (lower) trend inflation makes the REE more (less) unstable depends largely on the data (such as contemporaneous data, forecasts and lagged data) used in the conduct of monetary policy.
|Item Type:||MPRA Paper|
|Original Title:||Expectational stability under non-zero trend inflation|
|Keywords:||adaptive learning, E-stability, Taylor rule, trend inflation|
|Subjects:||D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D84 - Expectations ; Speculations
E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level ; Inflation ; Deflation
E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy
|Depositing User:||Ichiro Muto|
|Date Deposited:||03. Sep 2009 14:15|
|Last Modified:||20. Feb 2013 21:45|
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