التفاصيل البيبلوغرافية
| العنوان: |
Expectations Formation, Sticky Prices, and the ZLB. |
| المؤلفون: |
BERSSON, ELIZABETH, HÜRTGEN, PATRICK, PAUSTIAN, MATTHIAS |
| المصدر: |
Journal of Money, Credit & Banking (John Wiley & Sons, Inc.); Mar2024, Vol. 56 Issue 3, p365-393, 29p |
| مصطلحات موضوعية: |
KEYNESIAN economics, MONETARY policy, RATIONAL expectations (Economic theory), FISCAL policy, MACROECONOMIC models, INTEREST rates |
| مستخلص: |
At the zero lower bound (ZLB), expectations about the future path of monetary or fiscal policy are crucial. We model expectations formation under level‐k$k$ thinking, a form of bounded rationality formalized by García‐Schmidt and Woodford (2019) and Farhi and Werning (2019), consistent with experimental evidence. This process does not lead to a number of puzzling features from rational expectations models, such as the reversal puzzle, or implausible large fiscal multipliers. Optimal monetary policy at the ZLB under level‐k$k$ thinking prescribes keeping the nominal rate lower for longer, but short‐run macro‐economic stabilization is less powerful compared to rational expectations. [ABSTRACT FROM AUTHOR] |
|
Copyright of Journal of Money, Credit & Banking (John Wiley & Sons, Inc.) is the property of John Wiley & Sons, Inc. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) |
| قاعدة البيانات: |
Complementary Index |
Full Text Finder