Persistence-Dependent Optimal Policy Rules

Pré-publication, Document de travail: A policy target (for example inflation) may depend on the persistent component of exogenous shocks, such as the cost-push shock of oil, energy or imported prices. The larger the persistence of these exogenous shocks, the larger the welfare losses and the larger the response of policy instrument to this exogenous shock in a feedback rule, in order to decrease the sensitivity of the policy target to this shock.

Auteur(s)

Jean-Bernard Chatelain, Kirsten Ralf

Date de publication
  • 2020
Mots-clés JEL
C61 C62 E31 E52 E58
Mots-clés
  • Core inflation
  • Imported inflation
  • Optimal Policy
  • Welfare
  • Policy rule
Référence interne
  • PSE Working Papers n°2020-49
Version
  • 1