Aufsatz(gedruckt)#11981
ACTIVIST MONETARY POLICY UNDER RATIONAL EXPECTATIONS
In: Journal of political economy, Band 89, Heft 2, S. 249-269
ISSN: 0022-3808
THE PURPOSE OF THIS PAPER IS TO ARGUE THAT THE PURSUIT OF AN ACTIVIST MONETARY POLICY MAY MAKE ECONOMIC SENSE EVEN WHEN PEOPLE'S EXPECTATIONS ARE FORMED RATIONALLY. THIS PAPER PRESENTS A SIMPLE MODEL, BY REFERENCE TO WHICH IT CAN BE SHOWN THAT SUCH A POLICY MAY OR MAY NOT BE USEFUL IN OFFSETTING AGGREGATE DISTURBANCES DEPENDING ON EXTENT OF INFORMATION COSTS AND OF PARAMETER UNCERTAINTY.
