Optimal policy business cycles

Victor Ginsburgh and Philippe Michel

ULB Institutional Repository from ULB -- Universite Libre de Bruxelles

Abstract: The effectiveness of economic policies depends on the nature of expectations. Under adaptive expectations, the Philipps curve allows a governement to 'surprise' agents. Under rational expectations, there is less room for economic policies. We assume that only an (endogenously determined) proportion of agents form rational expectations and show that this leads the government to optimal policies which result in a policy cycle with real effects

Date: 1998
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in: Journal of Economic Dynamics and Control (1998) v.22 n° 4,p.503-518

Downloads: (external link)
https://dipot.ulb.ac.be/dspace/bitstream/2013/1703/1/vg-0028.pdf vg-0028 (application/pdf)

Related works:
Journal Article: Optimal policy business cycles (1998)
Working Paper: Optimal policy business cycles (1998)
Working Paper: Optimal Policy Business Cycle (1992)
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:ulb:ulbeco:2013/1703

Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... .ulb.ac.be:2013/1703

Access Statistics for this paper

More papers in ULB Institutional Repository from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().