TY - JOUR
T1 - Monetary policy in the New-Keynesian model: An application to the Euro Area
AU - Moons, C.
AU - Garretsen, H.
AU - van Aarle, B.
AU - Fornero, J.
PY - 2007/1/1
Y1 - 2007/1/1
N2 - This paper analyzes monetary policy in a stylized new-keynesian model. A number of issues are focused upon: (i) optimal monetary policy under commitment or discretion versus ad-hoc monetary policy based on simple rules, (ii) the effects of fiscal policies and foreign variables on monetary policy, (iii) the effects of fiscal deficit and interest rate smoothing objectives and the role of forward-backward linkages in the model. The model is estimated for the euro area. Using simulations of the estimated model, it is analyzed how these aspects might affect monetary policy of the ecb and macroeconomic fluctuations in the euro area.
AB - This paper analyzes monetary policy in a stylized new-keynesian model. A number of issues are focused upon: (i) optimal monetary policy under commitment or discretion versus ad-hoc monetary policy based on simple rules, (ii) the effects of fiscal policies and foreign variables on monetary policy, (iii) the effects of fiscal deficit and interest rate smoothing objectives and the role of forward-backward linkages in the model. The model is estimated for the euro area. Using simulations of the estimated model, it is analyzed how these aspects might affect monetary policy of the ecb and macroeconomic fluctuations in the euro area.
U2 - 10.1016/j.jpolmod.2007.05.013
DO - 10.1016/j.jpolmod.2007.05.013
M3 - Article
SN - 0161-8938
VL - 29
SP - 879
EP - 902
JO - Journal of Policy Modeling
JF - Journal of Policy Modeling
IS - 6
ER -