Abstract

http://ssrn.com/abstract=1859328
 
 

References (24)



 


 



The Effects of Anticipated Future Change in the Monetary Policy Regime


František Brázdik


Czech National Bank; Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute)

Juraj Antal


Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute)

December 7, 2007


Abstract:     
In this paper, we investigate the effects of an anticipated future change in monetary policy regime in small open economies targeting either inflation or the exchange rate. The announcement of a future change in the monetary policy regime triggers an immediate change in the behavior of households and firms. As a result the economy starts to behave differently even though the current monetary policy rule remains the same for the whole period before the monetary policy regime change. Thus, the behavior of economic agents over the transitory period to the new monetary policy rule depends not only on the current monetary policy rule in this transitory period, but also on the anticipated future monetary policy regime. Given a common future monetary policy regime, the behavior of inflation and exchange rate targeting economies converges after the announcement.

Number of Pages in PDF File: 61

Keywords: macroeconomics, new Keynesian DSGE models, small open economy

JEL Classification: E17, E31, E52, E58, E61, F02, F41

working papers series





Download This Paper

Date posted: June 7, 2011  

Suggested Citation

Brázdik, František and Antal, Juraj, The Effects of Anticipated Future Change in the Monetary Policy Regime (December 7, 2007). Available at SSRN: http://ssrn.com/abstract=1859328 or http://dx.doi.org/10.2139/ssrn.1859328

Contact Information

František Brázdik (Contact Author)
Czech National Bank ( email )
Na Prikope 28
CZ-11503 Praha 1
Czech Republic
Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute) ( email )
P.O. Box 882
7 Politickych veznu
Prague 1, 111 21
Czech Republic
HOME PAGE: http://www.cerge-ei.cz
Juraj Antal
Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute) ( email )
P.O. Box 882
7 Politickych veznu
Prague 1, 111 21
Czech Republic
HOME PAGE: http://www.cerge-ei.cz
Feedback to SSRN


Paper statistics
Abstract Views: 229
Downloads: 27
References:  24

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.422 seconds