A closed-form analysis of anticipated monetary policy

Kenichi Tamegawa
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Kenichi Tamegawa: Faculty of Literature and Social Sciences, Yamagata University, 1-4-12 Kojirakawa-machi, Yamagata-shi, Yamagata 990-8560, Japan

Economia, 2014, vol. 15, issue 2, 155_161

Abstract: In this short study, we use a simple new Keynesian model and carry out a closed-form analysis to observe the effects of anticipated monetary policy. For the assumed parameter space, we find that while an anticipated monetary easing always has inflationary effects, the effects on output depend on the parametric value of inflationary response to an interest-rate rule. If this parameter were low, an anticipated monetary easing would have a positive effect on output. However, if the parameter were sufficiently high, the policy would have a negative impact on output.

Keywords: DSGE model; Closed form; Anticipated monetary policy (search for similar items in EconPapers)
JEL-codes: E31 E52 (search for similar items in EconPapers)
Date: 2014
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