Expectation Traps and Monetary Policy

Stefania Albanesi (), V. V. Chari and Lawrence Christiano ()
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V. V. Chari: University of Minnesota and Federal Reserve Bank of Minneapolis

Macroeconomics from EconWPA

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)
New Economics Papers: this item is included in nep-cba, nep-dge, nep-mac and nep-mon
Date: Written 2002-01-10
Note: Type of Document - Acrobat PDF; prepared on IBM PC ; to print on HP; pages: 42 ; figures: included. 42 pages PDF format
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http://129.3.20.41/eps/mac/papers/0201/0201004.pdf (application/pdf)

Related works:
Working Paper: Expectation Traps and Monetary Policy (2002)
Working Paper: Expectation traps and monetary policy (2002)
Working Paper: Expectation traps and monetary policy (2003)
Working Paper: Expectation Traps and Monetary Policy
Journal Article: Expectation Traps and Monetary Policy (2003)
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