Title

Optimal Monetary Policy in a Model with Recursive Preferences

Publication Type

Presentation

Publication Date

2011

Abstract

This paper provides a simple and elegance approach for an empirical investigation of a model with Epstein-Zin (1989) preferences. The perturbation method implemented in Dynare is readily applicable for computation of equilibrium and welfare. A stylized new Keynesian economy with sticky prices is analyzed and optimal simple rules are accessed across various types of monetary policy rules.

Keywords

Recursive preference, perturbation method, Dynare, Ramsey steady state, optimal simple rule steady state, optimal simple rule

Discipline

Finance

Research Areas

Econometrics

Publication

Research Collection School Of Economics

City or Country

presented at AMES2011

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://www.mysmu.edu/faculty/sungbae/research/opez.pdf

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