Optimal monetary policy rules in an estimated sticky-information model

American Economic Journal: Macroeconomics

Volumn 1, Issue 2, 2009, Pages 1-28

  Reis, Ricardo ^a  

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

Author keywords

[No Author keywords available]

Indexed keywords

EID: 85017141329     PISSN: 19457707     EISSN: 19457715     Source Type: Journal    
DOI: 10.1257/mac.1.2.1     Document Type: Article

References (46)

1. Akerlof, George A., and Janet L. Yellen. 1985. "A Near-Rational Model of the Business Cycle, with Wage and Price Inertia." Quarterly Journal of Economics, 100(5): 823-38.
2. Alvarez, Fernando, and Urban J. Jermann. 2004. "Using Asset Prices to Measure the Cost of Business Cycles." Journal of Political Economy, 112(6): 1223-56.
3. An, Sungbae, and Frank Schorfheide. 2007. "Bayesian Analysis of DSGE Models." Econometric Reviews, 26(2-4): 113-72.
4. Ball, Laurence, N. Gregory Mankiw, and Ricardo Reis. 2005. "Monetary Policy for Inattentive Economies." Journal of Monetary Economics, 52(4): 703-25.
5. Basu, Susanto, and John G. Fernald. 1997. "Returns to Scale in U.S. Production: Estimates and Implications." Journal of Political Economy, 105(2): 249-83.
6. Basu, Susanto, John G. Fernald, and Miles S. Kimball. 2006. "Are Technology Improvements Contractionary?" American Economic Review, 96(5): 1418-48.
7. Bernanke, Ben S., Jean Boivin, and Piotr Eliasz. 2005. "Measuring the Effects of Monetary Policy: A Factor-Augmented Vector Autoregressive (FAVAR) Approach." Quarterly Journal of Economics, 120(1): 387-422.
8. Blanchard, Olivier J., and John Simon. 2001. "The Long and Large Decline in U.S. Output Volatility." Brookings Papers on Economic Activity, (1): 135-64.
9. Boivin, Jean, and Marc P. Giannoni. 2006. "Has Monetary Policy Become More Effective?" Review of Economics and Statistics, 88(3): 445-62.
10. Branch, William A., John Carlson, George W. Evans, and Bruce McGough. 2009. "Monetary Policy, Endogenous Inattention, and the Volatility Trade-off." Economic Journal, 119 (534): 123-57.
11. Campbell, John Y., and N. Gregory Mankiw. 1989. "Consumption, Income and Interest Rates: Reinterpreting the Time Series Evidence." In NBER Macroeconomics Annual 1989, ed. Olivier J. Blanchard and Stanley Fischer, 185-246. Cambridge: MIT Press.
12. Christiano, Lawrence J., Martin Eichenbaum, and Charles L. Evans. 1999. "Monetary Policy Shocks: What Have We Learned and to What End?" In Handbook of Macroeconomics, ed. John B. Taylor and Michael Woodford, 65-145. Amsterdam: Elsevier.
13. Christiano, Lawrence J., Martin Eichenbaum, and Charles L. Evans. 2005. "Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy." Journal of Political Economy, 113(1): 1-45.
14. Cogley, Timothy, and James M. Nason. 1995. "Output Dynamics in Real-Business-Cycle Models." American Economic Review, 85(3): 492-511.
15. Coibion, Olivier. 2006. "Inflation Inertia in Sticky Information Models." B.E. Journals in Macroeconomics: Contributions to Macroeconomics, 6(1): 1-29.
16. Dupor, Bill, Jing Han, and Yi Chan Tsai. 2007. "What do Technology Shocks Tell Us about the New Keynesian Paradigm?" Unpublished.
17. Edge, Rochelle M., Thomas Laubach, and John C. Williams. 2007. "Welfare-Maximizing Monetary Policy under Parameter Uncertainty." Board of Governors of the Federal Reserve System Finance and Economics Discussion Series 2007-56.
18. Erceg, Christopher J., Dale W. Henderson, and Andrew T. Levin. 2000. "Optimal Monetary Policy with Staggered Wage and Price Contracts." Journal of Monetary Economics, 46(2): 281-313.
19. Galí, Jordi. 1999. "Technology, Employment, and the Business Cycle: Do Technology Shocks Explain Aggregate Fluctuations?" American Economic Review, 89(1): 249-71.
20. Galí, Jordi. 2008. Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework. Princeton: Princeton University Press.
21. Giannoni, Marc P. 2007. "Robust Optimal Monetary Policy in a Forward-Looking Model with Parameter and Shock Uncertainty." Journal of Applied Econometrics, 22(1): 179-213.
22. Hurst, Erik. 2003. "Grasshoppers, Ants, and Pre-Retirement Wealth: A Test of Permanent Income." National Bureau of Economic Research Working Paper 10098.
23. Juillard, Michel, Philippe Karam, Douglas Laxton, and Paolo Pesenti. 2006. "Welfare-Based Monetary Policy Rules in an Estimated DSGE Model of the U.S. Economy." European Central Bank Working Paper 613.
24. Levin, Andrew T., Alexei Onatski, John C. Williams, and Noah M. Williams. 2006. "Monetary Policy Under Uncertainty in Micro-Founded Macroeconometric Models." In NBER Macroeconomics Annual 2005, ed. Mark Gertler and Kenneth Rogoff, 229-87. Cambridge: MIT Press.
25. Mankiw, N. Gregory, and Ricardo Reis. 2002. "Sticky Information versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve." Quarterly Journal of Economics, 117(4): 1295-1328.
26. Mankiw, N. Gregory, and Ricardo Reis. 2006. "Pervasive Stickiness." American Economic Review, 96(2): 164-69.
27. Mankiw, N. Gregory, and Ricardo Reis. 2007. "Sticky Information in General Equilibrium." Journal of the European Economic Association, 5(2-3): 603-13.
28. Orphanides, Athanasios. 2003. "The Quest for Prosperity without Inflation." Journal of Monetary Economics, 50(3): 633-63.
29. Orphanides, Athanasios, and John C. Williams. 2002. "Robust Monetary Policy Rules with Unknown Natural Rates." Brookings Papers on Economic Activity, (2): 63-118.
30. Reis, Ricardo. Forthcoming. "The Time-Series Properties of Aggregate Consumption: Implications for the Costs of Fluctuations." Journal of the European Economic Association.
31. Reis, Ricardo. 2006a. "Inattentive Consumers." Journal of Monetary Economics, 53(8): 1761-1800.
32. Reis, Ricardo. 2006b. "Inattentive Producers." Review of Economic Studies, 73(3): 793-821.
33. Reis, Ricardo. 2009. "A Sticky-Information General Equilibrium Model for Policy Analysis." In Monetary Policy under Uncertainty and Learning, ed. Klaus Schmidt-Heubel and Carl Walsh. Santiago: Central Bank of Chile.
34. Rogerson, Richard, and Johanna Wallenius. 2007. "Micro and Macro Elasticities in a Life Cycle Model with Taxes." National Bureau of Economic Research Working Paper 13017.
35. Rudebusch, Glenn D. 2002. "Term Structure Evidence on Interest Rate Smoothing and Monetary Policy Inertia." Journal of Monetary Economics, 49(6): 1161-87.
36. Schmitt-Grohé, Stephanie, and Martín Uribe. 2007. "Optimal Inflation Stabilization in a Medium- Scale Macroeconomic Model." In Monetary Policy Under Inflation Targeting, ed. Frederick S. Mishkin and Klaus Schmidt-Hebbel. Santiago: Central Bank of Chile.
37. Shimer, Robert. 2009. "Convergence in Macroeconomics: The Labor Wedge." American Economic Journal: Macroeconomics, 1(1): 280-97.
38. Sims, Christopher A. 2001. "Pitfalls of a Minimax Approach to Model Uncertainty." American Economic Review, 91(2): 51-4.
39. Smets, Frank, and Raf Wouters. 2003. "An Estimated Dynamic Stochastic General Equilibrium Model of the Euro Area." Journal of the European Economic Association, 1(5): 1123-75.
40. Svensson, Lars E. O. 2003. "What Is Wrong with Taylor Rules? Using Judgment in Monetary Policy through Targeting Rules." Journal of Economic Literature, 41(2): 426-77.
41. Taylor, John B. 1979. "Estimation and Control of a Macroeconomic Model with Rational Expectations." Econometrica, 47(5): 1267-86.
42. Taylor, John B. 1993. "Discretion versus Policy Rules in Practice." Carnegie-Rochester Conference Series in Public Policy, 39: 195-214.
43. Taylor, John B. 1999. "Staggered Price and Wage Setting in Macroeconomics." In Handbook of Macroeconomics, ed. John B. Taylor and Michael Woodford, 1009-50. Amsterdam: Elsevier.
44. Walsh, Carl E. 2003. "Speed Limit Policies: The Output Gap and Optimal Monetary Policy." American Economic Review, 93(1): 265-78.
45. Woodford, Michael. 2003a. Interest and Prices. Princeton: Princeton University Press.
46. Woodford, Michael. 2003b. "Optimal Interest-Rate Smoothing." Review of Economic Studies, 70(4): 861-86.