Open Access
Managing Expectations: Concepts and Examples
Robert G. King,Yang K. Lu,Ernesto Pasten +2 more
- 01 Jan 2007
TL;DR: The idea that monetary policy is principally about "managing expectations" has taken hold in central banks around the world and discussions of expectations management by central bankers, academics and by financial market participants frequently also include the idea that central bank credibility is imperfect as discussed by the authors.
read more
Abstract: The idea that monetary policy is principally about "managing expectations" has taken hold in central banks around the world. Discussions of expectations management by central bankers, academics and by …nancial market participants frequently also include the idea that central bank credibility is imperfect. We use a familiar macroeconomic model to discuss key concepts in the area of expectations management via a series of examples.
read more
Chat with Paper
AI Agents for this Paper
Find similar papers on Google Scholar, PubMed and Arxiv
Write a critical review of this paper
Analyze citations of this paper to find unaddressed research gaps
Citations
Three essays on the determinants of output, inflation and interest rates
Elmar Mertens
- 01 Jan 2007
TL;DR: In this article, the authors show empirically how different shocks lead to different behavior of interest rates over the business cycle and present a theory of monetary policy, when the central bank can better observe structural shocks than the public.
3
References
Rules Rather than Discretion: The Inconsistency of Optimal Plans
TL;DR: In this paper, it was shown that discretionary policy does not result in the social objective function being maximized, and that there is no way control theory can be made applicable to economic planning when expectations are rational.
8.8K
•Book
Interest and Prices: Foundations of a Theory of Monetary Policy
Michael Woodford
- 01 Jan 2003
TL;DR: Woodford as mentioned in this paper proposes a rule-based approach to monetary policy suitable for a world of instant communications and ever more efficient financial markets, arguing that effective monetary policy requires that central banks construct a conscious and articulate account of what they are doing.
5.9K
•Book
Interest and prices : foundations of a theory of monetary policy
Michael Woodford
- 01 Jan 2003
TL;DR: Woodford as discussed by the authors proposes a rule-based approach to monetary policy suitable for a world of instant communications and ever more efficient financial markets, arguing that effective monetary policy requires that central banks construct a conscious and articulate account of what they are doing.
5.7K
•Posted Content
A Positive Theory of Monetary Policy in a Natural-Rate Model
Robert J. Barro,David B. Gordon +1 more
TL;DR: In this paper, a rational expectations equilibrium in a discretionary environment where the policymaker pursues a "reasonable" objective, but where precommitments on monetary growth are precluded is established.
2.8K
•Posted Content
Some International Evidence on Output-Inflation Tradeoffs.
TL;DR: In this paper, the results of an empirical study of real output-inflation tradeoffs, based on annual time-series from eighteen countries over the years 1951-67, were examined from the point of view of the hypothesis that average real output levels are invariant under changes in the time pattern of the rate of inflation.