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- W2115663764 abstract "We examine optimal policy in an open-economy model with uncertainty and learning, where monetary policy actions affect the economy through the real exchange rate channel. Our results show that the degree of caution or activism in optimal policy depends on whether central banks are in coordinated or uncoordinated equilibrium. If central banks coordinate their policy actions then activism is optimal. In contrast, if there is no coordination, caution prevails. In the latter case caution is optimal because it helps central banks to avoid exposing themselves to manipulative actions by other central banks." @default.
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- W2115663764 date "2007-08-15" @default.
- W2115663764 modified "2023-10-16" @default.
- W2115663764 title "CAUTION OR ACTIVISM? MONETARY POLICY STRATEGIES IN AN OPEN ECONOMY" @default.
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- W2115663764 doi "https://doi.org/10.1017/s136510050706021x" @default.
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