Should a monetary policymaker look at money?

• 成果类型: Article; Proceedings Paper
• 署名作者: Dotsey, M; Hornstein, A
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Richmond; Federal Reserve System - USA; Federal Reserve Bank - Philadelphia
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(03)00025-4
• 发表日期: 2003
• 页码: 547-579
• 关键词: time-consistent monetary policy; asymmetric incomplete information; sticky prices

摘要

This paper examines whether monetary indicators are useful in implementing optimal discretionary monetary policy when the policymaker has incomplete information about the environment. We find that money does not contain useful information for the policymaker, if we calibrate the model to the U.S. economy. If money demand were to be appreciably less variable, observations on money could be useful in response to productivity shocks but would be harmful in response to money-demand shocks. We provide an incomplete information example where equilibrium welfare declines when the money-demand volatility decreases. (C) 2003 Elsevier Science B.V. All rights reserved.