Política monetaria y formación de expectativas en un modelo neokeynesiano

Patricia Carballo ()
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Patricia Carballo: Banco Central del Uruguay

No 2022001, Documentos de trabajo from Banco Central del Uruguay

Abstract: This paper studies the relationship between expectation formation and monetary policy in a New Keynesian general equilibrium framework. To do this, a model that incorporates an equation for the formation of private sector inflation expectations, is developed. Based on the results obtained in the gap estimation and shock simulation exercises, the model constitutes an ideal tool for the analysis of monetary policy in Uruguay. The impulse response exercises illustrate the importance of formation of expectations and credibility for the design of monetary policy. Likewise, the results obtained in the decomposition of the variance of the forecast errors show the importance of shocks on the inflation target and private sector expectations to explain the behavior of inflation and the formation of expectations.

Keywords: semi-structural model; monetary policy; expectations; Uruguay (search for similar items in EconPapers)
JEL-codes: E37 E47 E52 E58 F41 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2022
New Economics Papers: this item is included in nep-dge, nep-mac and nep-mon
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Citations: View citations in EconPapers (1)

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