Monetary policy analysis in a new keynesian model with money
Fecha
2019Director
Versión
Acceso abierto / Sarbide irekia
Tipo
Trabajo Fin de Grado/Gradu Amaierako Lana
Impacto
|
nodoi-noplumx
|
Resumen
This
paper
examines
the stabilizing performance of
two alternative monetary policy rules,
being the first
one based on the nominal interest rate and the second one on the rate of
nominal money growth. The analysis is
based on
a
calibrated
New Keynesian
model with
money. The model includes several features such as a
transaction cost techno ...
[++]
This
paper
examines
the stabilizing performance of
two alternative monetary policy rules,
being the first
one based on the nominal interest rate and the second one on the rate of
nominal money growth. The analysis is
based on
a
calibrated
New Keynesian
model with
money. The model includes several features such as a
transaction cost technology, sticky
prices and a monopolistic competitive
industry. The methodology entails an analysis of the
performance of two
monetary policy regimes, where we evaluate social welfare from the
expected household intertemporal utility. We seek for the optimized
coefficient on the
response of the policy instrument to inflation
deviations and compare the results between
the policy rules as well as
with the baseline calibration. The results obtained show that the
optimized Taylor rule is obtained with a coefficient on inflation equal to
4, which
outperforms the original Taylor (1993) rule coefficient of 1.5.
In a nominal
money growth
rule, the optimized coefficient on inflation is
significantly higher (around 11) and the social
welfare obtained is
slightly lower than in the case of an interest-rate rule. [--]
Materias
Optimal monetary policy,
Sticky prices,
Welfare-based monetary policy,
DSGE model,
Taylor-rule
Titulación
Enpresen Administrazio eta Zuzendaritzan Nazioarteko Graduatua / Ekonomian Nazioarteko Graduatua Nafarroako Unibertsitate Publikoan /
Graduado o Graduada Internacional en Administración y Dirección de Empresas / Graduado o Graduada Internacional en Economía por la Universidad Pública de Navarra