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Discretionary Monetary Policy in the Calvo Model
| Content Provider | Semantic Scholar |
|---|---|
| Author | Zandweghe, Willem Van Wolman, Alexander L. |
| Copyright Year | 2008 |
| Abstract | We study discretionary equilibrium in the Calvo pricing model for a monetary authority that chooses the money supply, producing three main contributions. First, price-adjusting firms have a unique equilibrium price for a broad range of parameterizations, in contrast to earlier results for the Taylor pricing model. Second, a generalized Euler equation makes transparent how the monetary authority affects future welfare through its influence on the future state of the economy. Third, we provide global solutions, including welfare analysis, for the transitional dynamics that occur if the monetary authority gains or loses the ability to commit. JEL Classification: E31; E52 |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://kansascityfed.org/PUBLICAT/RESWKPAP/PDF/RWP10-06.pdf |
| Alternate Webpage(s) | https://www.wiwi.hu-berlin.de/de/professuren/vwl/wtm2/seminar-schumpeter/wolman.pdf |
| Alternate Webpage(s) | http://www.kansascityfed.org/PUBLICAT/RESWKPAP/PDF/RWP10-06.pdf |
| Alternate Webpage(s) | http://richmondfed.org/publications/research/working_papers/2011/pdf/wp11-03.pdf |
| Alternate Webpage(s) | http://www.kc.frb.org/PUBLICAT/RESWKPAP/PDF/rwp10-06.pdf |
| Alternate Webpage(s) | http://www.kansascityfed.org/PUBLICAT/RESWKPAP/PDF/rwp10-06.pdf |
| Alternate Webpage(s) | http://kansascityfed.org/PUBLICAT/RESWKPAP/PDF/rwp10-06.pdf |
| Alternate Webpage(s) | http://qeconomics.org/ojs/forth/855/855-4.pdf |
| Alternate Webpage(s) | http://www.kc.frb.org/PUBLICAT/RESWKPAP/PDF/RWP10-06.pdf |
| Language | English |
| Access Restriction | Open |
| Subject Keyword | Baseline (configuration management) Calibration Initial condition Kind of quantity - Equilibrium Money Nash equilibrium Population Parameter Steady state |
| Content Type | Text |
| Resource Type | Article |