Monetary Policy Models

2004 ◽  
pp. 5-25
Author(s):  
Matthew Clements
Keyword(s):  
Monetary Policy ◽  
Policy Models

Habit Formation in Consumption and Its Implications for Monetary-Policy Models

2000 ◽  
Vol 90 (3) ◽  
pp. 367-390 ◽  
Author(s):  
Jeffrey C Fuhrer
Keyword(s):  
Monetary Policy ◽  
Habit Formation ◽  
Formation Model ◽  
Policy Model ◽  
Current Consumption ◽  
Policy Models ◽  
Empirical Tests

This paper explores a monetary-policy model with habit formation for consumers, in which consumers' utility depends in part on current consumption relative to past consumption. The empirical tests developed in the paper show that one can reject the hypothesis of no habit formation with tremendous confidence, largely because the habit-formation model captures the gradual hump-shaped response of real spending to various shocks. The paper then embeds the habit-consumption specification in a monetary-policy model and finds that the responses of both spending and inflation to monetary-policy actions are significantly improved by this modification. (JEL D12, E52, E43)

scholarly journals Improving monetary policy models

2008 ◽  
Vol 32 (8) ◽  
pp. 2460-2475 ◽  
Author(s):  
Christopher A. Sims
Keyword(s):  
Monetary Policy ◽  
Policy Models

scholarly journals Euler equations and money market interest rates: A challenge for monetary policy models

2007 ◽  
Vol 54 (7) ◽  
pp. 1863-1881 ◽  
Author(s):  
Matthew B. Canzoneri ◽  
Robert E. Cumby ◽  
Behzad T. Diba
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Euler Equations ◽  
Money Market ◽  
Policy Models

scholarly journals Incorporating Financial Sector Risk into Monetary Policy Models: Application to Chile

2011 ◽  
Vol 11 (228) ◽  
pp. 1 ◽  
Author(s):  
Leonardo Luna ◽  
Dale Gray ◽  
Jorge Restrepo ◽  
Carlos Garcia ◽  
◽  
...  
Keyword(s):  
Monetary Policy ◽  
Financial Sector ◽  
Policy Models

scholarly journals Incorporating Financial Sector Risk into Monetary Policy Models: Application to Chile

2011 ◽  
Author(s):  
Dale F. Gray ◽  
Carlos J. Garcia ◽  
Leonardo Luna ◽  
Jorge Restrepo
Keyword(s):  
Monetary Policy ◽  
Financial Sector ◽  
Policy Models
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