FRINK Linked Data Fragments server

Matches in SemOpenAlex for { <https://semopenalex.org/work/W1566153497> ?p ?o ?g. }

• W1566153497 abstract "This paper illustrates that conclusions regarding the size of monetary policy contributions to historical movements in financial variables and economic activity depend importantly on the dynamic specification of agent expectations. In both the financial press and in small macroeconomic models, the short-term interest rate is often interpreted as a sufficient indicator of current monetary policy. However, in a world with uncertainty and asymmetric information, long-horizon perceptions are also important in descriptions of policy transmissions with forward-looking agents. These perceptions include both the averages of expected nominal short rates which, under the expectations hypothesis, are embedded in the borrowing rates of firms and households, and agent perceptions of the long-run policy target for inflation that condition ex ante real rates and multi-period price and wage contracts. The standard class of mean-reverting VARs makes two key assumptions: the inflation target of monetary policy is assumed constant over the period being analyzed and the inflation target is assumed known by all economic agents. Because the target and perceived target are assumed to be constant and equal, long-horizon expectations are independent of short-run policy. Consequently, all monetary policy actions are transient and monetary policy appears to contribute only modestly to postwar fluctuations in bond rates and economic activity. This paper proposes a second class of models that admits shifting inflation targets and shifting long-horizon expectations. This class assumes that the inflation target is not known by economic agents, so that agents must form perceptions about the inflation target. The perceived target may vary over time and need not equal the inflation target. This class of models admits two types of policy shocks: permanent shifts in the inflation target and transitory perturbations of the short-term real rate. Because agents do not observe the true target, they cannot distinguish permanent and transitory policy shocks in the short run. As a result, the transmission mechanism works differently in this class of empirical models. In particular, because errors in agent predictions of short-run policy decisions can influence long-horizon expectations, policy actions have larger and more prolonged effects that estimated in the first class of VARs." @default.
• W1566153497 created "2016-06-24" @default.
• W1566153497 creator A5042875294 @default.
• W1566153497 creator A5083533362 @default.
• W1566153497 date "1999-03-01" @default.
• W1566153497 modified "2023-09-27" @default.
• W1566153497 title "Permanent and Transitory Policy Shocks in a VAR with Asymmetric Information" @default.
• W1566153497 hasPublicationYear "1999" @default.
• W1566153497 type Work @default.
• W1566153497 sameAs 1566153497 @default.
• W1566153497 citedByCount "0" @default.
• W1566153497 crossrefType "posted-content" @default.
• W1566153497 hasAuthorship W1566153497A5042875294 @default.
• W1566153497 hasAuthorship W1566153497A5083533362 @default.
• W1566153497 hasConcept C121332964 @default.
• W1566153497 hasConcept C126285488 @default.
• W1566153497 hasConcept C139719470 @default.
• W1566153497 hasConcept C145236788 @default.
• W1566153497 hasConcept C162324750 @default.
• W1566153497 hasConcept C175025494 @default.
• W1566153497 hasConcept C200941418 @default.
• W1566153497 hasConcept C2777388388 @default.
• W1566153497 hasConcept C33332235 @default.
• W1566153497 hasConcept C556758197 @default.
• W1566153497 hasConceptScore W1566153497C121332964 @default.
• W1566153497 hasConceptScore W1566153497C126285488 @default.
• W1566153497 hasConceptScore W1566153497C139719470 @default.
• W1566153497 hasConceptScore W1566153497C145236788 @default.
• W1566153497 hasConceptScore W1566153497C162324750 @default.
• W1566153497 hasConceptScore W1566153497C175025494 @default.
• W1566153497 hasConceptScore W1566153497C200941418 @default.
• W1566153497 hasConceptScore W1566153497C2777388388 @default.
• W1566153497 hasConceptScore W1566153497C33332235 @default.
• W1566153497 hasConceptScore W1566153497C556758197 @default.
• W1566153497 hasLocation W15661534971 @default.
• W1566153497 hasOpenAccess W1566153497 @default.
• W1566153497 hasPrimaryLocation W15661534971 @default.
• W1566153497 hasRelatedWork W10502134 @default.
• W1566153497 hasRelatedWork W1481800923 @default.
• W1566153497 hasRelatedWork W1492538217 @default.
• W1566153497 hasRelatedWork W2114975562 @default.
• W1566153497 hasRelatedWork W2116880511 @default.
• W1566153497 hasRelatedWork W2131890608 @default.
• W1566153497 hasRelatedWork W2153297986 @default.
• W1566153497 hasRelatedWork W2156753881 @default.
• W1566153497 hasRelatedWork W2256442366 @default.
• W1566153497 hasRelatedWork W2930592289 @default.
• W1566153497 hasRelatedWork W297373556 @default.
• W1566153497 hasRelatedWork W3110257319 @default.
• W1566153497 hasRelatedWork W3121574577 @default.
• W1566153497 hasRelatedWork W3121593376 @default.
• W1566153497 hasRelatedWork W3123462394 @default.
• W1566153497 hasRelatedWork W3124119077 @default.
• W1566153497 hasRelatedWork W3124322173 @default.
• W1566153497 hasRelatedWork W3124975142 @default.
• W1566153497 hasRelatedWork W3140060247 @default.
• W1566153497 hasRelatedWork W3148539032 @default.
• W1566153497 isParatext "false" @default.
• W1566153497 isRetracted "false" @default.
• W1566153497 magId "1566153497" @default.
• W1566153497 workType "article" @default.