Utilize este identificador para referenciar este registo: http://hdl.handle.net/10071/23067
Autoria: Gasteiger, E.
Data: 2021
Título próprio: Optimal constrained interest-rate rules under heterogeneous expectations
Volume: 190
Paginação: 287 - 325
ISSN: 0167-2681
DOI (Digital Object Identifier): 10.1016/j.jebo.2021.07.020
Palavras-chave: Heterogeneous expectations
Optimal monetary policy
Policy design
Policy implementation
Resumo: This paper examines optimal monetary policy under heterogeneous expectations. To this end, we develop a stochastic New Keynesian model with a cost-push shock and coexistence of one-step-ahead rational and adaptive expectations in decentralized markets. On the one side, heterogeneous expectations imply an amplification mechanism that has many adverse consequences missing under the rational expectations paradigm. On the other side, even discretionary optimal monetary policy can manipulate expectations via a novel channel. We argue that the incorporation of heterogeneous expectations in both the design and implementation of discretionary optimal monetary policy to exploit this channel lowers macroeconomic volatility. We find that: (1.) a more hawkish policy can reduce losses due to volatility, but an overly hawkish policy does not; (2.) overestimating the share of rational expectations in the design and implementation of policy creates additional losses, while the underestimation does not; (3.) credible commitment eliminates or mitigates many of the ramifications of heterogeneous expectations.
Arbitragem científica: yes
Acesso: Acesso Aberto
Aparece nas coleções:BRU-RI - Artigos em revistas científicas internacionais com arbitragem científica

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