The monetary policy response to uncertain inflation persistence

C-Tier
Journal: Economics Letters
Year: 2019
Volume: 175
Issue: C
Pages: 5-8

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We consider the implications of uncertainty regarding the persistence of inflation for the conduct of monetary policy in the context of a stylized New Keynesian model under the governance of a Taylor-type rule. Both Bayesian and robust (or ambiguity-averse) approaches are employed. The result one might have expected based on the seminal paper of Brainard (1967) which implies attenuation in policy responses, does not hold for the case of uncertain inflation persistence in either the Bayesian or robust cases.

Technical Details

RePEc Handle
repec:eee:ecolet:v:175:y:2019:i:c:p:5-8
Journal Field
General
Author Count
1
Added to Database
2026-01-29