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- W2790932403 abstract "We examine the standard New Keynesian economy’s Ramsey problem written in terms of instrument settings instead of allocations. Its standard formulation makes two instruments available: the path of current and future interest rates, and an “open mouth operation� which selects one of the many equilibria consistent with the chosen interest rates. Removing the open mouth operation by imposing a finite commitment horizon yields pathological policy advice that relies on the model's forward guidance puzzle." @default.
- W2790932403 created "2018-03-29" @default.
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- W2790932403 date "2018-02-05" @default.
- W2790932403 modified "2023-09-23" @default.
- W2790932403 title "Open Mouth Operations" @default.
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