Expectation Traps and Monetary Policy

Stefania Albanesi, Varadarajan Chari and Lawrence Christiano

Macroeconomics from University Library of Munich, Germany

Abstract: We describe a class of monetary economies that generate persistent episodes of high and low inflation. In this class of economies, variations in expectations can lead private agents to take actions which then make it optimal for the monetary authority to validate those expectations. We think these models deserve attention because they display several good empirical properties.

Keywords: Inflation; Time-Consistency (search for similar items in EconPapers)
JEL-codes: E3 E4 E5 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2002-01-10
New Economics Papers: this item is included in nep-cba, nep-dge, nep-mac and nep-mon
Note: Type of Document - Acrobat PDF; prepared on IBM PC ; to print on HP; pages: 42 ; figures: included. 42 pages PDF format
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

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Related works:
Journal Article: Expectation Traps and Monetary Policy (2003)
Working Paper: Expectation traps and monetary policy (2003)
Working Paper: Expectation traps and monetary policy (2002)
Working Paper: Expectation Traps and Monetary Policy (2002)
Working Paper: Expectation Traps and Monetary Policy
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpma:0201004

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