Monetary Policy Regimes and Beliefs
David Andolfatto () and
Paul Gomme ()
No 97002, Working Papers from University of Waterloo, Department of Economics
Recent monetary history has been characterized by monetary authorities that appear to shift periodically between distinct policy regimes associated with higher or lower average rates of money creation. As policy regimes are not directly observable and as the rate of monetary expansion varies for reasons other than regime changes, the general public must form beliefs over current monetary policy based on historical realizations of money growth rates. Depending on the parameters governing the behaviour of m onetary policy, beliefs (and therefore inflation forecasts) may evolve very slowly in the wake of actual regime changes, thereby exacerbating the costs of a disinflation policy. The quantitative importance of slowly adjusting beliefs is evaluated in the c ontext of a computable general equilibrium model.
Date: 1997-01, Revised 1997-01
References: Add references at CitEc
Citations View citations in EconPapers (3) Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Journal Article: Monetary Policy Regimes and Beliefs (2003)
Working Paper: Monetary Policy Regimes and Beliefs (2001)
Working Paper: Monetary policy regimes and beliefs (2001)
Working Paper: Monetary policy regimes and beliefs (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:wat:wpaper:97002
Access Statistics for this paper
More papers in Working Papers from University of Waterloo, Department of Economics Contact information at EDIRC.
Series data maintained by Pat Gruber ().