Discretion vs. timeless perspective under model-consistent stabilization objectives

Ivan Petrella, Raffaele Rossi and Emiliano Santoro

Economics Letters, 2014, vol. 122, issue 1, 84-88

Abstract: Recent literature has reported situations in which discretion dominates timeless perspective in the presence of elements that reduce the slope of the New Keynesian Phillips curve. Considering a model-consistent welfare metric inhibits this mechanism in the standard New Keynesian framework.

Keywords: Monetary policy; Discretion; Timeless perspective; Loss of social welfare (search for similar items in EconPapers)
JEL-codes: E23 E32 E52 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Discretion vs. Timeless Perspective under Model-consistent Stabilization Objectives (2013)
Working Paper: Discretion vs. Timeless Perspective under Model-consistent Stabilization Objectives (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:122:y:2014:i:1:p:84-88

DOI: 10.1016/j.econlet.2013.11.004

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