Economics at your fingertips  

Optimal Advice for Monetary Policy

Basu, Susanto, et al
Authors registered in the RePEc Author Service: Susanto Basu ()

Journal of Money, Credit and Banking, 1990, vol. 22, issue 1, 19-36

Abstract: This paper addresses how to give optimal advice about monetary policy when it is known that the advice may not be heeded. The authors examine a simple macroeconomic model in which monetary policy has the ability to stabilize output by offsetting exogenous shocks to aggregate demand. The optimal policy rule for such a model is easily derived, but an advisor who knows that his advice may not be followed should not recommend the optimal policy rule. This is true because, in giving activist advice, such an advisor increases uncertainty about what monetary policy will be followed. The authors solve for the rule that such an advisor should use in giving advice. Coauthors are Miles S. Kimball, N. Gregory Mankiw, and David N. Weil. Copyright 1990 by Ohio State University Press.

Date: 1990
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) ... 0.CO%3B2-4&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See for details.

Related works:
Working Paper: Optimal Advice for Monetary Policy (1989) Downloads
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:

Access Statistics for this article

Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West

More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing ().

Page updated 2019-06-16
Handle: RePEc:mcb:jmoncb:v:22:y:1990:i:1:p:19-36