On the perils of stabilizing prices when agents are learning:
We show that price level stabilization is not optimal in an economy where agents have incomplete knowledge about the policy implemented and try to learn it. A systematically more accommodative policy than what agents expect generates short term gains without triggering an abrupt loss of confidence,...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Electronic eBook |
| Language: | English |
| Published: |
München
CESifo
2015
|
| Series: | CESifo working paper
5173 : Category 7, Monetary policy and international finance |
| Online Access: | Volltext |
| Summary: | We show that price level stabilization is not optimal in an economy where agents have incomplete knowledge about the policy implemented and try to learn it. A systematically more accommodative policy than what agents expect generates short term gains without triggering an abrupt loss of confidence, since agents update expectations sluggishly. In the long run agents learn the policy implemented, and the economy converges to a rational ex- pectations equilibrium in which policy does not stabilize prices, economic volatility is high, and agents suffer the corresponding welfare losses. However, these losses are outweighed by short term gains from the learning phase. |
| Physical Description: | 1 Online-Ressource (49 S.) graph. Darst. |
| Format: | . - Acrobat Reader |
Staff View
MARC
| LEADER | 00000nmm a2200000 cb4500 | ||
|---|---|---|---|
| 001 | BV042899885 | ||
| 003 | DE-604 | ||
| 005 | 20190709 | ||
| 007 | cr|uuu---uuuuu | ||
| 008 | 150930s2015 |||| o||u| ||||||eng d | ||
| 035 | |a (OCoLC)927190774 | ||
| 035 | |a (DE-599)GBV817625968 | ||
| 040 | |a DE-604 |b ger | ||
| 041 | 0 | |a eng | |
| 049 | |a DE-521 | ||
| 084 | |a QB 910 |0 (DE-625)141231: |2 rvk | ||
| 100 | 1 | |a Mele, Antonio |e Verfasser |0 (DE-588)171331478 |4 aut | |
| 245 | 1 | 0 | |a On the perils of stabilizing prices when agents are learning |c Antonio Mele ; Krisztina Molnár ; Sergio Santoro |
| 264 | 1 | |a München |b CESifo |c 2015 | |
| 300 | |a 1 Online-Ressource (49 S.) |b graph. Darst. | ||
| 336 | |b txt |2 rdacontent | ||
| 337 | |b c |2 rdamedia | ||
| 338 | |b cr |2 rdacarrier | ||
| 490 | 1 | |a CESifo working paper |v 5173 : Category 7, Monetary policy and international finance | |
| 520 | 1 | |a We show that price level stabilization is not optimal in an economy where agents have incomplete knowledge about the policy implemented and try to learn it. A systematically more accommodative policy than what agents expect generates short term gains without triggering an abrupt loss of confidence, since agents update expectations sluggishly. In the long run agents learn the policy implemented, and the economy converges to a rational ex- pectations equilibrium in which policy does not stabilize prices, economic volatility is high, and agents suffer the corresponding welfare losses. However, these losses are outweighed by short term gains from the learning phase. | |
| 538 | |a . - Acrobat Reader | ||
| 700 | 1 | |a Molnár, Krisztina |e Verfasser |0 (DE-588)105231869X |4 aut | |
| 700 | 1 | |a Santoro, Sergio |e Verfasser |4 aut | |
| 830 | 0 | |a CESifo working paper |v 5173 : Category 7, Monetary policy and international finance |w (DE-604)BV014083264 |9 5173 | |
| 856 | 4 | 0 | |u https://www.cesifo.org/DocDL/cesifo1_wp5173.pdf |x Verlag |z kostenfrei |3 Volltext |
| 912 | |a ebook | ||
| 999 | |a oai:aleph.bib-bvb.de:BVB01-028328080 | ||
Record in the Search Index
| _version_ | 1804175192455380992 |
|---|---|
| any_adam_object | |
| author | Mele, Antonio Molnár, Krisztina Santoro, Sergio |
| author_GND | (DE-588)171331478 (DE-588)105231869X |
| author_facet | Mele, Antonio Molnár, Krisztina Santoro, Sergio |
| author_role | aut aut aut |
| author_sort | Mele, Antonio |
| author_variant | a m am k m km s s ss |
| building | Verbundindex |
| bvnumber | BV042899885 |
| classification_rvk | QB 910 |
| collection | ebook |
| ctrlnum | (OCoLC)927190774 (DE-599)GBV817625968 |
| discipline | Wirtschaftswissenschaften |
| format | Electronic eBook |
| fullrecord | <?xml version="1.0" encoding="UTF-8"?><collection xmlns="http://www.loc.gov/MARC21/slim"><record><leader>01980nmm a2200349 cb4500</leader><controlfield tag="001">BV042899885</controlfield><controlfield tag="003">DE-604</controlfield><controlfield tag="005">20190709 </controlfield><controlfield tag="007">cr|uuu---uuuuu</controlfield><controlfield tag="008">150930s2015 |||| o||u| ||||||eng d</controlfield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(OCoLC)927190774</subfield></datafield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(DE-599)GBV817625968</subfield></datafield><datafield tag="040" ind1=" " ind2=" "><subfield code="a">DE-604</subfield><subfield code="b">ger</subfield></datafield><datafield tag="041" ind1="0" ind2=" "><subfield code="a">eng</subfield></datafield><datafield tag="049" ind1=" " ind2=" "><subfield code="a">DE-521</subfield></datafield><datafield tag="084" ind1=" " ind2=" "><subfield code="a">QB 910</subfield><subfield code="0">(DE-625)141231:</subfield><subfield code="2">rvk</subfield></datafield><datafield tag="100" ind1="1" ind2=" "><subfield code="a">Mele, Antonio</subfield><subfield code="e">Verfasser</subfield><subfield code="0">(DE-588)171331478</subfield><subfield code="4">aut</subfield></datafield><datafield tag="245" ind1="1" ind2="0"><subfield code="a">On the perils of stabilizing prices when agents are learning</subfield><subfield code="c">Antonio Mele ; Krisztina Molnár ; Sergio Santoro</subfield></datafield><datafield tag="264" ind1=" " ind2="1"><subfield code="a">München</subfield><subfield code="b">CESifo</subfield><subfield code="c">2015</subfield></datafield><datafield tag="300" ind1=" " ind2=" "><subfield code="a">1 Online-Ressource (49 S.)</subfield><subfield code="b">graph. Darst.</subfield></datafield><datafield tag="336" ind1=" " ind2=" "><subfield code="b">txt</subfield><subfield code="2">rdacontent</subfield></datafield><datafield tag="337" ind1=" " ind2=" "><subfield code="b">c</subfield><subfield code="2">rdamedia</subfield></datafield><datafield tag="338" ind1=" " ind2=" "><subfield code="b">cr</subfield><subfield code="2">rdacarrier</subfield></datafield><datafield tag="490" ind1="1" ind2=" "><subfield code="a">CESifo working paper</subfield><subfield code="v">5173 : Category 7, Monetary policy and international finance</subfield></datafield><datafield tag="520" ind1="1" ind2=" "><subfield code="a">We show that price level stabilization is not optimal in an economy where agents have incomplete knowledge about the policy implemented and try to learn it. A systematically more accommodative policy than what agents expect generates short term gains without triggering an abrupt loss of confidence, since agents update expectations sluggishly. In the long run agents learn the policy implemented, and the economy converges to a rational ex- pectations equilibrium in which policy does not stabilize prices, economic volatility is high, and agents suffer the corresponding welfare losses. However, these losses are outweighed by short term gains from the learning phase.</subfield></datafield><datafield tag="538" ind1=" " ind2=" "><subfield code="a">. - Acrobat Reader</subfield></datafield><datafield tag="700" ind1="1" ind2=" "><subfield code="a">Molnár, Krisztina</subfield><subfield code="e">Verfasser</subfield><subfield code="0">(DE-588)105231869X</subfield><subfield code="4">aut</subfield></datafield><datafield tag="700" ind1="1" ind2=" "><subfield code="a">Santoro, Sergio</subfield><subfield code="e">Verfasser</subfield><subfield code="4">aut</subfield></datafield><datafield tag="830" ind1=" " ind2="0"><subfield code="a">CESifo working paper</subfield><subfield code="v">5173 : Category 7, Monetary policy and international finance</subfield><subfield code="w">(DE-604)BV014083264</subfield><subfield code="9">5173</subfield></datafield><datafield tag="856" ind1="4" ind2="0"><subfield code="u">https://www.cesifo.org/DocDL/cesifo1_wp5173.pdf</subfield><subfield code="x">Verlag</subfield><subfield code="z">kostenfrei</subfield><subfield code="3">Volltext</subfield></datafield><datafield tag="912" ind1=" " ind2=" "><subfield code="a">ebook</subfield></datafield><datafield tag="999" ind1=" " ind2=" "><subfield code="a">oai:aleph.bib-bvb.de:BVB01-028328080</subfield></datafield></record></collection> |
| id | DE-604.BV042899885 |
| illustrated | Not Illustrated |
| indexdate | 2024-07-10T07:12:23Z |
| institution | BVB |
| language | English |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-028328080 |
| oclc_num | 927190774 |
| open_access_boolean | 1 |
| owner | DE-521 |
| owner_facet | DE-521 |
| physical | 1 Online-Ressource (49 S.) graph. Darst. |
| psigel | ebook |
| publishDate | 2015 |
| publishDateSearch | 2015 |
| publishDateSort | 2015 |
| publisher | CESifo |
| record_format | marc |
| series | CESifo working paper |
| series2 | CESifo working paper |
| spelling | Mele, Antonio Verfasser (DE-588)171331478 aut On the perils of stabilizing prices when agents are learning Antonio Mele ; Krisztina Molnár ; Sergio Santoro München CESifo 2015 1 Online-Ressource (49 S.) graph. Darst. txt rdacontent c rdamedia cr rdacarrier CESifo working paper 5173 : Category 7, Monetary policy and international finance We show that price level stabilization is not optimal in an economy where agents have incomplete knowledge about the policy implemented and try to learn it. A systematically more accommodative policy than what agents expect generates short term gains without triggering an abrupt loss of confidence, since agents update expectations sluggishly. In the long run agents learn the policy implemented, and the economy converges to a rational ex- pectations equilibrium in which policy does not stabilize prices, economic volatility is high, and agents suffer the corresponding welfare losses. However, these losses are outweighed by short term gains from the learning phase. . - Acrobat Reader Molnár, Krisztina Verfasser (DE-588)105231869X aut Santoro, Sergio Verfasser aut CESifo working paper 5173 : Category 7, Monetary policy and international finance (DE-604)BV014083264 5173 https://www.cesifo.org/DocDL/cesifo1_wp5173.pdf Verlag kostenfrei Volltext |
| spellingShingle | Mele, Antonio Molnár, Krisztina Santoro, Sergio On the perils of stabilizing prices when agents are learning CESifo working paper |
| title | On the perils of stabilizing prices when agents are learning |
| title_auth | On the perils of stabilizing prices when agents are learning |
| title_exact_search | On the perils of stabilizing prices when agents are learning |
| title_full | On the perils of stabilizing prices when agents are learning Antonio Mele ; Krisztina Molnár ; Sergio Santoro |
| title_fullStr | On the perils of stabilizing prices when agents are learning Antonio Mele ; Krisztina Molnár ; Sergio Santoro |
| title_full_unstemmed | On the perils of stabilizing prices when agents are learning Antonio Mele ; Krisztina Molnár ; Sergio Santoro |
| title_short | On the perils of stabilizing prices when agents are learning |
| title_sort | on the perils of stabilizing prices when agents are learning |
| url | https://www.cesifo.org/DocDL/cesifo1_wp5173.pdf |
| volume_link | (DE-604)BV014083264 |
| work_keys_str_mv | AT meleantonio ontheperilsofstabilizingpriceswhenagentsarelearning AT molnarkrisztina ontheperilsofstabilizingpriceswhenagentsarelearning AT santorosergio ontheperilsofstabilizingpriceswhenagentsarelearning |