Adaptive learning and the use of forecasts in monetary policy

Journal of Economic Dynamics and Control

Volumn 32, Issue 11, 2008, Pages 3661-3681

  Preston, Bruce ^a  

^a Och Spine at New York Presbyterian Hospitals   (United States)

Author keywords

Adaptive learning; Monetary policy; Targeting rules

Indexed keywords

EID: 53049089725     PISSN: 01651889     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jedc.2007.12.009     Document Type: Article

References (24)

1. Bernanke B.S., and Woodford M. Inflation forecasts and monetary policy. Journal of Money, Credit, and Banking 29 4 (1997) 653-686
2. Chari V., Kehoe P.J., and McGrattan E.R. Sticky price models of the business cycle: can the contract multiplier solve the persistence problem. Econometrica 68 5 (2000) 1151-1180
3. Clarida R., Gali J., and Gertler M. The science of monetary policy: a New Keynesian perspective. Journal of Economic Literature 37 (1999) 1661-1707
4. Evans G.W., and Honkapohja S. Learning and Expectations in Economics (2001), Princeton University Press, Princeton
5. Evans G.W., and Honkapohja S. Monetary policy, expectations and commitment. Scandanavian Journal of Economics 108 (2006) 15-38
6. Friedman M. The role of monetary policy. American Economic Review 58 1 (1968) 1-17
7. Gaspar, V., Smets, F., Vestin, D., 2005. Optimal monetary policy under adpative learning. Unpublished Working Paper.
8. Giannoni, M.P., Woodford, M., 2002. Optimal interest-rate rules: I. General theory. NBER Working Paper no. 9419.
9. Honkapohja S., and Mitra K. Performance of monetary policy with internal central bank forecasting. Journal of Economic Dynamics and Control 29 4 (2005) 627-658
10. Marcet A., and Sargent T.J. Convergence of least squares learning mechanisms in self-referential linear stochastic models. Journal of Economic Theory 48 (1989) 337-368
11. McCallum B.T. On non-uniqueness in rational expectations models: an attempt at perspective. Journal of Monetary Economics 11 (1983) 139-168
12. McCallum, B.T., Nelson, E., 2000. Timeless perspective vs. discretionary monetary policy in forward-looking models. Carnegie Mellon University, Unpublished.
13. Molnar, K., Santoro, S., 2005. Optimal monetary policy when agents are learning. Iniversitat Pomeu Fabra, Unpublished.
14. Preston, B., 2005a. Adaptive learning in infinite horizon decision problems. Columbia University, Unpublished.
15. Preston B. Learning about monetary policy rules when long-horizon expectations matter. International Journal of Central Banking 1 2 (2005) 81-126
16. Preston B. Adaptive learning, forecast-based instrument rules and monetary policy. Journal of Monetary Economics 53 (2006)
17. Rotemberg J., and Woodford M. Interest-rate rules and an estimated sticky-price model. In: Taylor J. (Ed). Monetary Policy Rules (1999), University of Chicago Press, Chicago
18. Sargent T.J. Bounded Rationality in Macroeconomics (1993), Oxford University Press, Oxford
19. Sargent T.J., and Wallace N. Rational expectations, the optimal monetary instrument, and the optimal monetary supply rule. Journal of Political Economy 83 (1975) 241-254
20. Svensson L.E. Inflation targetting on monetary policy rule. Journal of Monetary Economics 43 (1999) 607-654
21. Svensson L.E. What is wrong with Taylor rules? Using judgement in monetary policy through targeting rules. Journal of Economic Literature 41 (2003) 426-477
22. Svensson L.E., and Woodford M. Implementing optimal monetary policy through inflation forecast targeting. In: Bernanke B.S., and Woodford M. (Eds). The Inflation Targeting Debate (2005), University of Chicago Press, Chicago
23. Woodford, M., 1999. Optimal monetary policy inertia. NBER Working Paper 7261.
24. Woodford M. Interest and Prices: Foundations of a Theory of Monetary Policy (2003), Princeton University Press, Princeton