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| LEADER |
01343nam a2200193Ia 4500 |
| 001 |
10.1017-S1365100517000499 |
| 008 |
220511s2019 CNT 000 0 und d |
| 020 |
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|a 13651005 (ISSN)
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| 245 |
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|a WOODFORD'S APPROACH TO ROBUST POLICY ANALYSIS IN A LINEAR-QUADRATIC FRAMEWORK
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| 260 |
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|b Cambridge University Press
|c 2019
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| 856 |
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|z View Fulltext in Publisher
|u https://doi.org/10.1017/S1365100517000499
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| 520 |
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|a This paper extends Woodford's approach to the robustly optimal monetary policy to a general linear quadratic framework. We provide algorithms to solve for a time-invariant linear robustly optimal policy in a timeless perspective and for a time-invariant linear Markov perfect equilibrium under discretion. We apply our methods to a New Keynesian model of monetary policy with persistent cost-push shocks and inflation persistence. We find that the robustly optimal commitment inflation is less responsive to a cost-push shock when the shock is more persistent and that the robustly optimal discretionary policy is more responsive to lagged inflation when inflation is more persistent. Copyright © Cambridge University Press 2018.
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| 650 |
0 |
4 |
|a Commitment
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| 650 |
0 |
4 |
|a Discretion
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| 650 |
0 |
4 |
|a Policy Analysis
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| 650 |
0 |
4 |
|a Robustness
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| 700 |
1 |
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|a Kwon, H.
|e author
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| 700 |
1 |
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|a Miao, J.
|e author
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| 773 |
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|t Macroeconomic Dynamics
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