Time Consistency of Optimal Monetary Policy with Heterogeneous Expectations in DSGE model

Q: How can I download an article?

To download an article from SID, first log in to the site, search for the article title, and click on the 'Download Article' option.

Q: How can I download an ISI article?

To download an ISI article on SID, enter the keyword or article title in the search bar, view the relevant results, click on the desired article, and select the 'Download Article' option.

Q: How can I access the SID database?

To access the SID database, visit SID.ir, create an account, and log in to access scientific resources.

Q: Is downloading articles from SID free?

Some articles on SID are available for free, while others require payment. Details are specified on the article's page.

GANJI HAMID; ABBASI NEJAD HOSSEIN

Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Journal Paper

Paper Information

Journal: Journal of Economic Research and Policies Year:2019 | Volume:26 | Issue:88 Page(s): 39-70

Download Full-Text

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Persian Verion

View:

355

Download:

Cites:

Information Journal Paper

Title

Time Consistency of Optimal Monetary Policy with Heterogeneous Expectations in DSGE model

Author(s)

GANJI HAMID | ABBASI NEJAD HOSSEIN | Issue Writer Certificate

Keywords

policyQ2

ruleQ1

discretionQ1

dynamic stochastic general equilibrium modelQ1

Heterogeneous expectationsQ1

Abstract

The purpose of this study is to investigate the time consistency of optimal monetary policy in the New Keynesian dynamic stochastic general equilibrium (DSGE) model with considering the heterogeneity of expectations in the. The optimal monetary policy in the proposed theory is based on rational expectations. On the other hand, the homogeneity of economic agents and the way they shape their expectations is a mechanism that has always been taken into account in empirical studies. Some approaches for the standard models have shown that the predictions of inflation and production are not rational, or at least are irrational for some agents and some cases. In this study, we examine the effect of different shaping of individuals' expectations on macroeconomic variables and also investigate the distributional effects of monetary policy. Moreover, the problem of optimal dynamic policy is discussed under the terms of the rule and discretion with using the expectation operators of the economic agents. The results of this study show the monetary policy in the rational expectation approach affects inflation more than production, while in the context of comparative expectations, the real sector is influenced to monetary policy shocks more than inflation. Also, by stimulating inflation, in most cases, inflation has been tacitly higher than the inflation targeting in the five-year plans.

Cites

No record.

References

No record.

Cite

APA: Copy

GANJI, HAMID, & ABBASI NEJAD, HOSSEIN. (2019). Time Consistency of Optimal Monetary Policy with Heterogeneous Expectations in DSGE model. JOURNAL OF ECONOMIC RESEARCH AND POLICIES, 26(88 ), 39-70. SID. https://sid.ir/paper/360068/en

Vancouver: Copy

GANJI HAMID, ABBASI NEJAD HOSSEIN. Time Consistency of Optimal Monetary Policy with Heterogeneous Expectations in DSGE model. JOURNAL OF ECONOMIC RESEARCH AND POLICIES[Internet]. 2019;26(88 ):39-70. Available from: https://sid.ir/paper/360068/en

IEEE: Copy

HAMID GANJI, and HOSSEIN ABBASI NEJAD, “Time Consistency of Optimal Monetary Policy with Heterogeneous Expectations in DSGE model,” JOURNAL OF ECONOMIC RESEARCH AND POLICIES, vol. 26, no. 88 , pp. 39–70, 2019, [Online]. Available: https://sid.ir/paper/360068/en

Related Journal Papers