scholarly journals Price Level Determinacy with an Interest Rate Policy Rule and Rational Expectations

10.3386/w0559 ◽  
1980 ◽  
Author(s):  
Bennett McCallum
Keyword(s):  
Interest Rate ◽  
Rational Expectations ◽  
Price Level ◽  
Policy Rule ◽  
Interest Rate Policy ◽  
Rate Policy

scholarly journals The Science of Monetary Policy: An Imperfect Knowledge Perspective

2018 ◽  
Vol 56 (1) ◽  
pp. 3-59 ◽  
Author(s):  
Stefano Eusepi ◽  
Bruce Preston
Keyword(s):  
Monetary Policy ◽  
Rational Expectations ◽  
Price Level ◽  
Policy Design ◽  
Central Banks ◽  
New Keynesian ◽  
Interest Rate Policy ◽  
Imperfect Knowledge ◽  
Knowledge Perspective ◽  
Rate Policy

This paper reevaluates the basic prescriptions of monetary policy design in the new Keynesian paradigm through the lens of imperfect knowledge. We show that while the basic logic of monetary policy design under rational expectations continues to obtain, perfect knowledge and learning can limit the set of policies available to central banks, rendering expectations management in general more difficult. Nonetheless, the desirability of some form of price-level targeting, inducing inertia in interest-rate policy, paramount under rational expectations, is robust to the assumption of imperfect knowledge. (JEL D84, E13, E31, E52, E58)

Analysis of the Bank of Russia information policy

2017 ◽  
pp. 88-110 ◽  
Author(s):  
S. Drobyshevsky ◽  
P. Trunin ◽  
A. Bozhechkova ◽  
E. Gorunov ◽  
D. Petrova
Keyword(s):  
Interest Rate ◽  
Nonparametric Tests ◽  
Information Policy ◽  
Var Models ◽  
New Approach ◽  
Interest Rate Policy ◽  
News Reports ◽  
Internet Users ◽  
Rate Policy ◽  
Exchange Markets

The article investigates the Bank of Russia information policy using a new approach to measuring information effects on Russian data, including the analysis of the tonality of news reports, as well as internet users’ queries on Google. The efficiency of regulator’s information signals is studied using EGARCH-, VAR- models, as well as nonparametric tests. The authors conclude that the regulator communicates effectively in terms of the predictability of interest rate policy, the degree to which information signals affect the money and foreign exchange markets.

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