Time-varying policy rule under learning

C-Tier
Journal: Economics Letters
Year: 2015
Volume: 129
Issue: C
Pages: 25-28

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

Previous literature has shown that, in a New Keynesian model, an expectations based policy rule induces E-stability of the fundamental equilibrium, while a fundamentals based one does not. We derive an alternative rule, based only on fundamentals, which can also achieve stability of equilibrium under learning. This policy has parameters that evolve over time and is adaptively learnable by the policymaker.

Technical Details

RePEc Handle
repec:eee:ecolet:v:129:y:2015:i:c:p:25-28
Journal Field
General
Author Count
1
Added to Database
2026-01-24