EconPapers    
Economics at your fingertips  
 

The monetary policy response to uncertain inflation persistence

Robert Tetlow

Economics Letters, 2019, vol. 175, issue C, 5-8

Abstract: We consider the implications of uncertainty regarding the persistence of inflation for the conduct of monetary policy in the context of a stylized New Keynesian model under the governance of a Taylor-type rule. Both Bayesian and robust (or ambiguity-averse) approaches are employed. The result one might have expected based on the seminal paper of Brainard (1967) which implies attenuation in policy responses, does not hold for the case of uncertain inflation persistence in either the Bayesian or robust cases.

Keywords: Monetary policy; Uncertainty; Inflation persistence (search for similar items in EconPapers)
JEL-codes: E4 E6 C11 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176518304476
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:175:y:2019:i:c:p:5-8

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-03-16
Handle: RePEc:eee:ecolet:v:175:y:2019:i:c:p:5-8