Poole in the New Keynesian model

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dc.contributor.authorCollard, F.
dc.contributor.authorDellas, H.
dc.date.issued2005
dc.description.abstractWe study the properties of alternative central bank targeting procedures within the standard New Keynesian model. We find that Poole's famous insights concerning the output stabilization properties of money and interest rate targeting obtain when intertemporal substitution is low. And that output volatility rankings do not induce similar welfare rankings. Unlike the popular presumption, money targeting always fares better for money demand shocks. For fiscal shocks, money targeting does better for low and worse for high degree of intertemporal substitution. The opposite pattern obtains for supply shocks.
dc.description.statementofresponsibilityFabrice Collard and Harris Dellas
dc.description.urihttp://www.elsevier.com/wps/find/journaldescription.cws_home/505541/description#description
dc.identifier.citationEuropean Economic Review, 2005; 49(4):887-907
dc.identifier.doi10.1016/j.euroecorev.2003.08.013
dc.identifier.issn0014-2921
dc.identifier.urihttp://hdl.handle.net/2440/57630
dc.language.isoen
dc.publisherElsevier Science BV
dc.source.urihttps://doi.org/10.1016/j.euroecorev.2003.08.013
dc.subjectPoole
dc.subjectTargeting
dc.subjectMacroeconomic volatility
dc.subjectWelfare
dc.titlePoole in the New Keynesian model
dc.typeJournal article
pubs.publication-statusPublished

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