Ordering Policy Rules with an Unconditional Welfare Measure

Tatiana Damjanovic (), Vladislav Damjanovic and Charles Nolan

International Journal of Central Banking, 2015, vol. 11, issue 1, 103-149

Abstract: The unconditional expectation of social welfare is often used to assess alternative macroeconomic policy rules in applied quantitative research. This paper provides a detailed analysis of such policies. It sets out the unconditionally optimal (UO) policy problem and derives a linear-quadratic (LQ) version of that problem that approximates the exact non-linear problem. The properties of UO policies are analyzed through a series of examples and contrasted with the timeless perspective (TP), exposited in Benigno and Woodford (2012). Some substantive implications for optimal monetary policy are explored.

JEL-codes: E20 E32 F32 F41 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.ijcb.org/journal/ijcb15q1a4.pdf (application/pdf)
http://www.ijcb.org/journal/ijcb15q1a4.htm (text/html)

Related works:
Working Paper: Ordering Policy Rules with an Unconditional Welfare Measure (2011)
Working Paper: Ordering policy rules with an unconditional welfare measure (2011)
Working Paper: Ordering policy rules with an unconditional welfare measure (2011)
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:ijc:ijcjou:y:2015:q:1:a:4

Access Statistics for this article

International Journal of Central Banking is currently edited by Loretta J. Mester

More articles in International Journal of Central Banking from International Journal of Central Banking
Bibliographic data for series maintained by Bank for International Settlements ().