Indicator variables for optimal policy

• 成果类型: Article; Proceedings Paper
• 署名作者: Svensson, LEO; Woodford, M
• 署名单位: Princeton University; Centre for Economic Policy Research - UK; National Bureau of Economic Research
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(03)00030-8
• 发表日期: 2003
• 页码: 691-720
• 关键词: partial information; Kalman filter; monetary policy; discretion and commitment

摘要

The optimal weights on indicators in models with partial information about the state of the economy and forward-looking variables are derived and interpreted, both for equilibria under discretion and under commitment. An example of optimal monetary policy with a partially observable potential output and a forward-looking indicator is examined. The optimal response to the optimal estimate of potential output displays certainty equivalence, whereas the optimal response to the imperfect observation of output depends on the noise in this observation. (C) 2003 Published by Elsevier Science B.V.