Optimal monetary policy in a Phillips-curve world

• 成果类型: Article
• 署名作者: Cooley, TF; Quadrini, V
• 署名单位: University of Southern California; New York University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2003.12.010
• 发表日期: 2004
• 页码: 174-208
• 关键词: Matching; unemployment; liquidity channel; Time-consistent policy

摘要

In this paper, we study optimal monetary policy in a model that integrates the modern theory of unemployment with a liquidity model of monetary transmission. Two policy environments are considered: period-by-period optimization (time consistency) and full commitment (Ramsey allocation). When the economy is subject to productivity shocks, the optimal policy is pro-cyclical. We also characterize the long-term properties of monetary policy and show that with commitment the optimal inflation rate is inversely related to the bargaining power of workers. Both results find empirical support in the data. (C) 2004 Elsevier Inc. All rights reserved.