Optimal monetary policy responses to exogenous technology shocks

1999 ◽  
Vol 5 (3) ◽  
pp. 396-396
Author(s):  
Andrea Jao
Keyword(s):  
Monetary Policy ◽  
Technology Shocks ◽  
Optimal Monetary Policy ◽  
Policy Responses

SHOULD THE CENTRAL BANK BE CONCERNED ABOUT HOUSING PRICES?

2012 ◽  
Vol 17 (1) ◽  
pp. 29-53 ◽  
Author(s):  
Karsten Jeske ◽  
Zheng Liu
Keyword(s):  
Monetary Policy ◽  
Housing Prices ◽  
Optimal Monetary Policy ◽  
Factor Intensity ◽  
Optimal Weight ◽  
Policy Responses ◽  
Expenditure Share ◽  
The Asymmetry ◽  
Two Sectors ◽  
Housing Expenditure

Housing is an important component of the consumption basket. Because both rental prices and goods prices are sticky, the literature suggests that optimal monetary policy should stabilize both types of prices, with the optimal weight on rental inflation proportional to the housing expenditure share. In a two-sector DSGE model with sticky rental prices and goods prices, however, we find that the optimal weight on rental inflation in the Taylor rule is small—much smaller than that implied by the housing expenditure share. We show that the asymmetry in policy responses to rent inflation versus goods inflation stems from the asymmetry in factor intensity between the two sectors.

Optimal Monetary Policy at the Zero Lower Bound

2015 ◽  
Author(s):  
Costas Azariadis ◽  
James Bullard ◽  
Aarti Singh ◽  
Jacek Suda
Keyword(s):  
Monetary Policy ◽  
Lower Bound ◽  
Zero Lower Bound ◽  
Optimal Monetary Policy
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