A Behavioral New Keynesian Model

• 成果类型: Article
• 署名作者: Gabaix, Xavier
• 署名单位: Harvard University; National Bureau of Economic Research; Centre for Economic Policy Research - UK
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20162005
• 发表日期: 2020
• 页码: 2271-2327
• 关键词: monetary-policy; interest-rates; information suppression; shrouded attributes; inflation; guidance; DYNAMICS; expectations; FISHER; prices

摘要

This paper analyzes how bounded rationality affects monetary and fiscal policy via an empirically relevant enrichment of the New Keynesian model. It models agents' partial myopia toward distant atypical events using a new microfounded cognitive discounting parameter. Compared to the rational model, (i) there is no forward guidance puzzle; (ii) the Taylor principle changes: with passive monetary policy but enough myopia equilibria are determinate and economies stable; (iii) the zero lower bound is much less costly; (iv) price-level targeting is not optimal; (v) fiscal stimulus is effective; (vi) the model is neo-Fisherian in the long run, Keynesian in the short run.