Paper #356

Títol:

The science of monetary policy: A new Keynesian perspective

Autors:

Richard Clarida, Jordi Galí i Mark Gertler

Data:

Setembre 1997

Resum:

This paper reviews the recent literature on monetary policy rules. We exposit the monetary policy design problem within a simple baseline theoretical framework. We then consider the implications of adding various real world complications. Among other things, we show that the optimal policy implicitly incorporates inflation targeting. We also characterize the gains from making credible commitments to fight inflation. In contrast to conventional wisdom, we show that gains from commitment may emerge even in the central bank is not trying to inadvisedly push output above its natural level. We also consider the implications of frictions such as imperfect information.

Paraules clau:

Monetary policy, credibility, stabilization, new keynesian models

Codis JEL:

E0, E5

Àrea de Recerca:

Macroeconomia i Economia Internacional

Publicat a:

Journal of Economic Literature, 37, 4, (1999), pp. 1661-1707

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