Performance of monetary policy with nternal Central Bank forecasting

Seppo Mikko Sakari Honkapohja () and Kaushik Mitra ()

No 127, Working Paper Series from European Central Bank

Abstract: Recent models of monetary policy have analyzed the desirability of different optimal and ad hoc interest rules under the restrictive assumption that forecasts of the private sector and the central bank are homogenous. In this paper, we study the implications of heterogeneity in forecasts of the central bank and private agents for the performance of interest rules from the learning viewpoint. JEL Classification: E52; E31; D84.

Keywords: Adaptive learning; stability; heterogeneity; monetary policy. (search for similar items in EconPapers)
Date: Written 2002-02
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Related works:
Working Paper: Performance of Monetary Policy with Internal Central Bank Forecasting (2004)
Working Paper: Performance of monetary policy with internal central bank forecasting (2002)
Journal Article: Performance of monetary policy with internal central bank forecasting (2005)
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