Performance of monetary policy with internal central bank forecasting

Seppo Mikko Sakari Honkapohja () and Kaushik Mitra

No 3/2002, Research Discussion Papers from Bank of Finland

Abstract: Recent models of monetary policy have analysed the desirability of different optimal and ad hoc interest-rate rules under the restrictive assumption that forecasts of the private sector and central bank are homogeneous. In this paper, we study from a learning perspective the implications of heterogeneity across forecasts by the central bank and private agents for the performance of interest-rate rules.

Keywords: adaptive learning; stability; heterogeneity; monetary policy (search for similar items in EconPapers)
JEL-codes: D84 E31 E52 (search for similar items in EconPapers)
Date: 2002-02-18
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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 nternal Central Bank forecasting (2002)
Journal Article: Performance of monetary policy with internal central bank forecasting (2005)
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