scholarly journals Endogenous Monetary Policy with Unobserved Potential Output

2003 ◽  
Author(s):  
Alex Cukierman ◽  
Francesco Lippi
Keyword(s):  
Monetary Policy ◽  
Potential Output

scholarly journals Macroeconomic theory in the aftermath of the crisis: mainstream and new Keynesianism

Nova Economia ◽  
2015 ◽  
Vol 25 (2) ◽  
pp. 237-260 ◽  
Author(s):  
Ítalo Pedrosa ◽  
Maryse Farhi
Keyword(s):  
Monetary Policy ◽  
Inflation Rate ◽  
Financial System ◽  
Output Growth ◽  
Short Term ◽  
Macroeconomic Theory ◽  
Potential Output ◽  
Potential Output Growth ◽  
New Variables ◽  
Main Change

Abstract: The failure of mainstream macroeconomics to provide a suitable set of instruments to understand and fight against the economic crisis has triggered a debate among the dominant theoretical tendency, on its own foundations and on the macroeconomic policy that should be implemented after the crisis. The aim of this paper is to investigate to what extent the crisis affected mainstream macroeconomic theory and policy guidelines. We argue that new Keynesians did not pass unharmed by the crisis, themselvesacknowledging the need to adapt their models through the incorporation of new variables and ideas. The main change is the recognition of the non-neutrality of the financial system, which calls into question monetary policy guided by one instrument, the short-term interest rate, and by one target, the inflation rate, which would be insufficient to simultaneously lead to a stable and near potential output growth whilemaintainingthe stability of the financial system.

2015 Spillover Report

Policy Papers ◽  
2015 ◽  
Vol 2015 (43) ◽  
Author(s):  
Keyword(s):  
Monetary Policy ◽  
Aggregate Demand ◽  
Output Growth ◽  
Structural Reforms ◽  
Demand And Supply ◽  
Potential Output ◽  
Advanced Economies ◽  
Potential Output Growth ◽  
Output Gaps ◽  
The Impact

Many countries around the globe, particularly the systemic advanced economies, face the challenge of closing output gaps and raising potential output growth. Addressing these challenges requires a package of macroeconomic, financial and structural policies that will boost both aggregate demand and aggregate supply, while closing the shortfall between demand and supply. Each element of this package is important and one cannot substitute for the other: easy monetary policy will not raise potential output just as structural reforms will not close the output gap. This report studies the impact on emerging markets and nonsystemic advanced economies from monetary policy actions in systemic advanced economies, with a look also at knock-on effects from the decline in world oil prices.

scholarly journals Hysteresis in Potential Output and Monetary Policy

2014 ◽  
Vol 61 (4) ◽  
pp. 371-396 ◽  
Author(s):  
Daniel Kienzler ◽  
Kai D. Schmid
Keyword(s):  
Monetary Policy ◽  
Potential Output

scholarly journals Endogenous monetary policy with unobserved potential output

2005 ◽  
Vol 29 (11) ◽  
pp. 1951-1983 ◽  
Author(s):  
Alex Cukierman ◽  
Francesco Lippi
Keyword(s):  
Monetary Policy ◽  
Potential Output
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