Taylor rule under financial instability /

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Bibliographic Details
Author / Creator:Bauducco, Sofía, author.
Imprint:Washington, D.C. : International Monetary Fund, IMF Institute, 2008.
Description:1 online resource (41 pages) : illustrations
Language:English
Series:IMF working paper ; WP/08/18
IMF working paper ; WP/08/18.
Subject:
Format: E-Resource Book
URL for this record:http://pi.lib.uchicago.edu/1001/cat/bib/12496529
Hidden Bibliographic Details
Other authors / contributors:Buliř, Aleš, author.
Čihák, Martin, author.
IMF Institute.
International Monetary Fund.
ISBN:1283515784
9781283515788
Notes:Includes bibliographical references (pages 23-25).
Restrictions unspecified
Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010.
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212
digitized 2010 HathiTrust Digital Library committed to preserve
Print version record.
Summary:This paper contributes to the analysis of monetary policy in the face of financial instability. In particular, we extend the standard new Keynesian dynamic stochastic general equilibrium (DSGE) model with sticky prices to include a financial system. Our simulations suggest that if financial instability affects output and inflation with a lag and if the central bank has privileged information about credit risk, monetary policy that responds instantly to increased credit risk can trade off more output and inflation instability today for a faster return to the trend than a policy that follows the simple Taylor rule with only the contemporaneous output gap and inflation.
Other form:Print version: Bauducco, Sofía. Taylor rule under financial instability. Washington, D.C. : International Monetary Fund, IMF Institute, 2008

MARC

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520 3 |a This paper contributes to the analysis of monetary policy in the face of financial instability. In particular, we extend the standard new Keynesian dynamic stochastic general equilibrium (DSGE) model with sticky prices to include a financial system. Our simulations suggest that if financial instability affects output and inflation with a lag and if the central bank has privileged information about credit risk, monetary policy that responds instantly to increased credit risk can trade off more output and inflation instability today for a faster return to the trend than a policy that follows the simple Taylor rule with only the contemporaneous output gap and inflation. 
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650 0 |a Monetary policy  |x Econometric models. 
650 0 |a Finance  |x Econometric models. 
650 0 |a Inflation (Finance)  |x Econometric models. 
650 6 |a Banques centrales  |x Modèles économétriques. 
650 6 |a Politique monétaire  |x Modèles économétriques. 
650 6 |a Finances  |x Modèles économétriques. 
650 6 |a Inflation  |x Modèles économétriques. 
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650 7 |a Inflation (Finance)  |x Econometric models.  |2 fast  |0 (OCoLC)fst00972453 
650 7 |a Monetary policy  |x Econometric models.  |2 fast  |0 (OCoLC)fst01025234 
655 4 |a Electronic books. 
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700 1 |a Čihák, Martin,  |e author.  |0 http://id.loc.gov/authorities/names/no2001079077 
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710 2 |a International Monetary Fund.  |0 http://id.loc.gov/authorities/names/n81052755 
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