Projects per year
Abstract
We reexamine some of the issues related to the choice of the monetary policy instrument in a dynamic general equilibrium model exhibiting endogenous growth in which a fraction of productive government spending is financed by means of issuing currency. We evaluate the performance of four monetary instruments: monetary aggregate targeting, nominal interest rate targeting, inflation rate targeting and real interest rate targeting. We show that a switch from any other targeting procedure towards the real interest rate targeting may be welfare improving even if the real interest rate targeting is a policy that delivers the most volatile consumption in the short run. © 2010 Springer Science+Business Media, LLC.
| Original language | English |
|---|---|
| Pages (from-to) | 39-65 |
| Journal | Computational Economics |
| Volume | 37 |
| DOIs | |
| Publication status | Published - 1 Jan 2011 |
Keywords
- Monetary policy targets
- Productive government spending
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Dive into the research topics of 'The Role of Central Bank Operating Procedures in an Economy with Productive Government Spending'. Together they form a unique fingerprint.Projects
- 1 Finished
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Política fiscal: incidencia fiscal intergeneracional y la interacción con la estructura de los mercados.
Caballé, J. (Principal Investigator), Petith , H. C. (Researcher on contract), Arespa Castelló, M. (Investigator), Choi , S. (Investigator), Conesa Roca, J. C. (Investigator), Dahlhaus ., T. (Investigator), Gierlinger , J. (Investigator), Gnocchi , S. (Investigator), Grobovsek ., J. K. (Investigator), Gualu Endegnanew, Y. (Investigator), Obiols, F. (Investigator), Panadès Martí, J. (Investigator), Pappa , E. (Investigator), Sorolla Amat, V. (Investigator), Suárez-Lledó Grande, J. (Investigator) & Arespa Castelló, M. (Collaborator)
Spanish Ministry of Science and Innovation
1/01/10 → 31/12/12
Project: Research Projects and Other Grants