Finance and Economics Discussion Series: Expectations, Learning and the Costs of Disinflation: Experiments Using the Frb/Us Model

Bomfim, Antulio

ISBN 10: 1288721609 / ISBN 13: 9781288721603

Published by Bibliogov, 2013

About this Item

Seller Inventory # I-9781288721603

Bibliographic Details

• Title: Finance and Economics Discussion Series: Expectations, Learning and the Costs of Disinflation: Experiments Using the Frb/Us Model
• Publisher: Bibliogov
• Publication Date: 2013
• Language: English
• ISBN 10: 1288721609
• ISBN 13: 9781288721603
• Binding: Soft cover
• Condition: New

About this title

Synopsis

The costs of disinflation are explored using the Board's new sticky-price rational expectations macroeconometric model of the U.S. economy, FRB/US. The model nests both model consistent and restricted-information rational' expectations. Monetary policy is governed by interest-rate reaction functions of which two are considered: the well-known Taylor rule and another rule that is more aggressive and richer in its specification, estimated using data for the last fifteen years. Agents are required to learn of shifts of the inflation target using linear updating rules. The simulated costs of disinflation are compared with other estimates of sacrifice ratios.