scholarly journals Optimal monetary policy in the presence of pricing-to-market

2006 ◽  
Vol 28 (3) ◽  
pp. 564-584 ◽  
Author(s):  
Jochen Michaelis
Keyword(s):  
Monetary Policy ◽  
Optimal Monetary Policy ◽  
Pricing To Market

scholarly journals Currency Misalignments and Optimal Monetary Policy: A Reexamination

2011 ◽  
Vol 101 (6) ◽  
pp. 2796-2822 ◽  
Author(s):  
Charles Engel
Keyword(s):  
Monetary Policy ◽  
Open Economy ◽  
Policy Implications ◽  
Optimal Monetary Policy ◽  
Price Inflation ◽  
Pricing To Market ◽  
Local Currency ◽  
Local Currency Pricing ◽  
Target Consumer ◽  
Currency Misalignment

This paper examines optimal monetary policy in an open-economy two-country world with sticky prices under pricing to market. We show that currency misalignments are inefficient and lower world welfare. We find that optimal policy must target consumer price inflation, the output gap, and the currency misalignment. The paper derives the loss function of a cooperative monetary policymaker and the optimal targeting rules. The model is a modified version of Clarida, Galí, and Gertler (JME, 2002). The key change is that we allow pricing to market or local-currency pricing and consider the policy implications of currency misalignments. JEL: E52, F31, F41

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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