Exogenous Information, Endogenous Information, and Optimal Monetary Policy

• 成果类型: Article
• 署名作者: Paciello, Luigi; Wiederholt, Mirko
• 署名单位: Goethe University Frankfurt
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdt024
• 发表日期: 2014
• 页码: 356-388
• 关键词: prices

摘要

This article studies optimal monetary policy when decision-makers in firms choose how much attention they devote to aggregate conditions. When the amount of attention that decision-makers in firms devote to aggregate conditions is exogenous, complete price stabilization is optimal only in response to shocks that cause efficient fluctuations under perfect information. When decision-makers in firms choose how much attention they devote to aggregate conditions, complete price stabilization is optimal also in response to shocks that cause inefficient fluctuations under perfect information. Hence, recognizing that decision-makers in firms can choose how much attention they devote to aggregate conditions has major implications for optimal policy.