Unconditionally Optimal Monetary Policy
University of St. Andrews - School of Economics and Finance
University of Saint Andrews - School of Economics & Management
University of St. Andrews
CDMA Working Paper No. 0721
We develop a simple and intuitive approach for analytically deriving unconditionally optimal (UO) policies, a topic of enduring interest in optimal monetary policy analysis. The approach can be employed to both general linear-quadratic problems and to the underlying non-linear environments. We provide a detailed example using a canonical New Keynesian framework.
Number of Pages in PDF File: 20
Keywords: Unconditional expectations, optimal monetary policy
JEL Classification: E20, E32, F32, F41working papers series
Date posted: November 20, 2007
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo8 in 0.344 seconds