Optimal irreversible monetary policy

• Hasui, Kohei

• 小林, 照義

• Sugo, Tomohiro

抄録

Real-world central banks have a strong aversion to policy reversals. Nevertheless, theoretical models of monetary policy within the dynamic general equilibrium framework normally ignore the irreversibility of interest rate control. In this paper, we develop a formal model that incorporates a central bank's discretionary optimization problem with an aversion to policy reversals. We show that, even under a discretionary regime, the optimal timing of liftoff from the zero lower bound is characterized by its history dependence, which arises from the option value to waiting, and there exists an optimal degree of policy irreversibility at which the social loss is minimized.

収録刊行物

• European Economic Review

  European Economic Review 134 103707-, 2021-05

  Elsevier B.V.

キーワード

• Monetary policy
• Policy irreversibility
• Reversal aversion
• Liquidity trap

詳細情報

• CRID: 1050013861703859712
• NII論文ID: 120007002562
• NII書誌ID: AA00173478
• DOI: 10.1016/j.euroecorev.2021.103707
• HANDLE: 20.500.14094/90008060
• ISSN: 00142921
• Web Site: https://api.elsevier.com/content/article/PII:S001429212100060X?httpAccept=text/xml
• Web Site: https://api.elsevier.com/content/article/PII:S001429212100060X?httpAccept=text/plain
• 本文言語コード: en
• 資料種別: journal article
• データソース種別:
  • IRDB
  • Crossref
  • CiNii Articles
  • KAKEN