Monetary policy strategies to navigate post-pandemic inflation: an assessment using the ECB’s New Area-Wide Model
Author
Abstract
Suggested Citation
Note: 604093
Download full text from publisher
References listed on IDEAS
- Michael Woodford, 2010.
"Robustly Optimal Monetary Policy with Near-Rational Expectations,"
American Economic Review, American Economic Association, vol. 100(1), pages 274-303, March.
- Michael Woodford, 2005. "Robustly Optimal Monetary Policy with Near Rational Expectations," NBER Working Papers 11896, National Bureau of Economic Research, Inc.
- Woodford, Michael, 2005. "Robustly optimal monetary policy with near-rational expectations," CFS Working Paper Series 2007/12, Center for Financial Studies (CFS).
- Günter Coenen & Carlos Montes‐Galdón & Frank Smets, 2023.
"Effects of State‐Dependent Forward Guidance, Large‐Scale Asset Purchases, and Fiscal Stimulus in a Low‐Interest‐Rate Environment,"
Journal of Money, Credit and Banking, Blackwell Publishing, vol. 55(4), pages 825-858, June.
- Günter Coenen & Carlos Montes-Galdón & Frank Smets, 2019. "Effects of State-Dependent Forward Guidance, Large-Scale Asset Purchases and Fiscal Stimulus in a Low-Interest-Rate Environment," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 19/983, Ghent University, Faculty of Economics and Business Administration.
- Smets, Frank & Coenen, Günter & Montes-Galdón, Carlos, 2021. "Effects of State-Dependent Forward Guidance, Large-Scale Asset Purchases and Fiscal Stimulus in a Low-Interest-Rate Environment," CEPR Discussion Papers 16050, C.E.P.R. Discussion Papers.
- Coenen, Günter & Montes-Galdón, Carlos & Smets, Frank, 2020. "Effects of state-dependent forward guidance, large-scale asset purchases and fiscal stimulus in a low-interest-rate environment," CFS Working Paper Series 639, Center for Financial Studies (CFS).
- Coenen, Günter & Montes-Galdón, Carlos & Smets, Frank, 2020. "Effects of state-dependent forward guidance, large-scale asset purchases and fiscal stimulus in a low-interest-rate environment," Working Paper Series 2352, European Central Bank.
- Malin Adolfson & Stefan Laséen & Jesper Lindé & Lars E.O. Svensson, 2011.
"Optimal Monetary Policy in an Operational Medium‐Sized DSGE Model,"
Journal of Money, Credit and Banking, Blackwell Publishing, vol. 43(7), pages 1287-1331, October.
- Malin Adolfson & Stefan Las√Âen & Jesper Lind√ & Lars E.O. Svensson, 2011. "Optimal Monetary Policy in an Operational Medium-Sized DSGE Model," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 43(7), pages 1287-1331, October.
- Adolfson, Malin & Laseén, Stefan & Lindé, Jesper & Svensson, Lars E.O., 2008. "Optimal Monetary Policy in an Operational Medium-Sized DSGE Model," Working Paper Series 225, Sveriges Riksbank (Central Bank of Sweden).
- Svensson, Lars E.O. & Linde, Jesper & Adolfson, Malin & LASEEN, PER, 2008. "Optimal Monetary Policy in an Operational Medium-Sized DSGE Model," CEPR Discussion Papers 6907, C.E.P.R. Discussion Papers.
- Malin Adolfson & Stefan Laséen & Jesper Lindé & Lars E.O. Svensson, 2008. "Optimal Monetary Policy in an Operational Medium-Sized DSGE Model," NBER Working Papers 14092, National Bureau of Economic Research, Inc.
- Malin Adolfson & Stefan Laseen & Jesper Lindé & Lars E. O. Svensson, 2011. "Optimal monetary policy in an operational medium-sized DSGE model," International Finance Discussion Papers 1023, Board of Governors of the Federal Reserve System (U.S.).
- Davide Debortoli & Jinill Kim & Jesper Lindé & Ricardo Nunes, 2019.
"Designing a Simple Loss Function for Central Banks: Does a Dual Mandate Make Sense?,"
The Economic Journal, Royal Economic Society, vol. 129(621), pages 2010-2038.
- Davide Debortoli & Jinill Kim & Jesper Lindé & Ricardo Nunes, 2017. "Designing a simple loss function for central banks: Does a dual mandate make sense?," Economics Working Papers 1560, Department of Economics and Business, Universitat Pompeu Fabra.
- Davide Debortoli & Mr. Jinill Kim & Jesper Lindé & Mr. Ricardo C Nunes, 2017. "Designing a Simple Loss Function for Central Banks: Does a Dual Mandate Make Sense?," IMF Working Papers 2017/164, International Monetary Fund.
- Jinill Kim & Jesper Lindé & Ricardo Nunes & Davide Debortoli, 2017. "Designing a Simple Loss Function for Central Banks: Does a Dual Mandate Make Sense?," Working Papers 958, Barcelona School of Economics.
- Debortoli, Davide & Kim, Jinill & Lindé, Jesper & Nunes, Ricardo, 2018. "Designing a Simple Loss Function for Central Banks: Does a Dual Mandate Make Sense?," Working Paper Series 366, Sveriges Riksbank (Central Bank of Sweden), revised 01 Mar 2019.
- Brand, Claus & Obstbaum, Meri & Coenen, Günter & Sondermann, David & Lydon, Reamonn & Ajevskis, Viktors & Hammermann, Felix & Angino, Siria & Hernborg, Nils & Basso, Henrique & Hertweck, Matthias & Bi, 2021. "Employment and the conduct of monetary policy in the euro area," Occasional Paper Series 275, European Central Bank.
- Karadi, Peter & Nakov, Anton, 2021.
"Effectiveness and addictiveness of quantitative easing,"
Journal of Monetary Economics, Elsevier, vol. 117(C), pages 1096-1117.
- Karadi, Peter & Nakov, Anton, 2020. "Effectiveness and Addictiveness of Quantitative Easing," CEPR Discussion Papers 14951, C.E.P.R. Discussion Papers.
- Coenen, Günter & Montes-Galdón, Carlos & Saint Guilhem, Arthur & Hutchinson, John & Motto, Roberto, 2022. "Rate forward guidance in an environment of large central bank balance sheets: a Eurosystem stock-taking assessment," Occasional Paper Series 290, European Central Bank.
- Calvo, Guillermo A., 1983. "Staggered prices in a utility-maximizing framework," Journal of Monetary Economics, Elsevier, vol. 12(3), pages 383-398, September.
- Coenen, Günter & Karadi, Peter & Schmidt, Sebastian & Warne, Anders, 2018. "The New Area-Wide Model II: an extended version of the ECB’s micro-founded model for forecasting and policy analysis with a financial sector," Working Paper Series 2200, European Central Bank.
- Marc P. Giannoni & Michael Woodford, 2003. "Optimal Interest-Rate Rules: A General Approach," Levine's Bibliography 666156000000000246, UCLA Department of Economics.
- Marc P. Giannoni & Michael Woodford, 2003.
"Optimal Interest-Rate Rules: I. General Theory,"
Levine's Bibliography
506439000000000384, UCLA Department of Economics.
- Marc P. Giannoni & Michael Woodford, 2003. "Optimal Interest-Rate Rules: I. General Theory," NBER Working Papers 9419, National Bureau of Economic Research, Inc.
- Kabaca, Serdar & Maas, Renske & Mavromatis, Kostas & Priftis, Romanos, 2023.
"Optimal quantitative easing in a monetary union,"
European Economic Review, Elsevier, vol. 152(C).
- Serdar Kabaca & Renske Maas & Kostas Mavromatis & Romanos Priftis, 2020. "Optimal quantitative easing in a monetary union," Working Papers 697, DNB.
- Serdar Kabaca & Renske Maas & Kostas Mavromatis & Romanos Priftis, 2020. "Optimal Quantitative Easing in a Monetary Union," Staff Working Papers 20-49, Bank of Canada.
- Ms. Mai Hakamada & Carl E. Walsh, 2024. "The Consequences of Falling Behind the Curve: Inflation Shocks and Policy Delays Under Rational and Behavioral Expectations," IMF Working Papers 2024/042, International Monetary Fund.
- Gertler, Mark & Karadi, Peter, 2011. "A model of unconventional monetary policy," Journal of Monetary Economics, Elsevier, vol. 58(1), pages 17-34, January.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Ciccarelli, Matteo & Darracq Pariès, Matthieu & Priftis, Romanos & Angelini, Elena & Bańbura, Marta & Bokan, Nikola & Fagan, Gabriel & Gumiel, José Emilio & Kornprobst, Antoine & Lalik, Magdalena & Mo, 2024. "ECB macroeconometric models for forecasting and policy analysis," Occasional Paper Series 344, European Central Bank.
- Erceg, Christopher J. & Jakab, Zoltan & Lindé, Jesper, 2021. "Monetary policy strategies for the European Central Bank," Journal of Economic Dynamics and Control, Elsevier, vol. 132(C).
- Gebauer Stefan, 2021. "Welfare-Based Optimal Macroprudential Policy with Shadow Banks," Working papers 817, Banque de France.
- Coenen, Günter & Montes-Galdón, Carlos & Schmidt, Sebastian, 2021.
"Macroeconomic stabilisation and monetary policy effectiveness in a low-interest-rate environment,"
Journal of Economic Dynamics and Control, Elsevier, vol. 132(C).
- Schmidt, Sebastian & Coenen, Günter & Montes-Galdón, Carlos, 2021. "Macroeconomic stabilisation and monetary policy effectiveness in a low-interest-rate environment," CEPR Discussion Papers 16403, C.E.P.R. Discussion Papers.
- Coenen, Günter & Montes-Galdón, Carlos & Schmidt, Sebastian, 2021. "Macroeconomic stabilisation and monetary policy effectiveness in a low-interest-rate environment," Working Paper Series 2572, European Central Bank.
- Coenen, Günter & Montes-Galdón, Carlos & Schmidt, Sebastian, 2021. "Macroeconomic stabilisation and monetary policy effectiveness in a low-interest-rate environment," CFS Working Paper Series 656, Center for Financial Studies (CFS).
- Darracq Pariès, Matthieu & Notarpietro, Alessandro & Kilponen, Juha & Papadopoulou, Niki & Zimic, Srečko & Aldama, Pierre & Langenus, Geert & Alvarez, Luis Julian & Lemoine, Matthieu & Angelini, Elena, 2021. "Review of macroeconomic modelling in the Eurosystem: current practices and scope for improvement," Occasional Paper Series 267, European Central Bank.
- Dimakopoulou, Vasiliki & Economides, George & Philippopoulos, Apostolis & Vassilatos, Vanghelis, 2024.
"Can central banks do the unpleasant job that governments should do?,"
European Economic Review, Elsevier, vol. 165(C).
- Vasiliki Dimakopoulou & George Economides & Apostolis Philippopoulos & Vanghelis Vassilatos, 2023. "Can central banks do the unpleasant job that governments should do?," Working Papers 324, Bank of Greece.
- Vasiliki Dimakopoulou & George Economides & Apostolis Philippopoulos & Vanghelis Vassilatos, 2023. "Can Central Banks Do the Unpleasant Job That Governments Should Do?," CESifo Working Paper Series 10603, CESifo.
- Karadi, Peter & Nakov, Anton, 2021.
"Effectiveness and addictiveness of quantitative easing,"
Journal of Monetary Economics, Elsevier, vol. 117(C), pages 1096-1117.
- Karadi, Peter & Nakov, Anton, 2020. "Effectiveness and Addictiveness of Quantitative Easing," CEPR Discussion Papers 14951, C.E.P.R. Discussion Papers.
- Onofri, Marco & Peersman, Gert & Smets, Frank, 2023.
"The effectiveness of a negative interest rate policy,"
Journal of Monetary Economics, Elsevier, vol. 140(C), pages 16-33.
- Smets, Frank & Onofri, Marco & Peersman, Gert, 2021. "The Effectiveness of a Negative Interest Rate Policy," CEPR Discussion Papers 16236, C.E.P.R. Discussion Papers.
- Marco Onofri & Gert Peersman & Frank R. Smets, 2021. "The Effectiveness Of A Negative Interest Rate Policy," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 21/1015, Ghent University, Faculty of Economics and Business Administration.
- Andrea Ferrero, 2012.
"The Advantage of Flexible Targeting Rules,"
Journal of Money, Credit and Banking, Blackwell Publishing, vol. 44(5), pages 863-881, August.
- Andrea Ferrero, 2012. "The Advantage of Flexible Targeting Rules," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 44(5), pages 863-881, August.
- Andrea Ferrero, 2008. "The advantage of flexible targeting rules," Staff Reports 339, Federal Reserve Bank of New York.
- de Groot, Oliver & Haas, Alexander, 2023.
"The signalling channel of negative interest rates,"
Journal of Monetary Economics, Elsevier, vol. 138(C), pages 87-103.
- Oliver de Groot & Alexander Haas, 2019. "The Signalling Channel of Negative Interest Rates," Working Papers 201905, University of Liverpool, Department of Economics.
- de Groot, Oliver & Haas, Alexander, 2019. "The Signalling Channel of Negative Interest Rates," MPRA Paper 95479, University Library of Munich, Germany.
- de Groot, Oliver & Haas, Alexander, 2020. "The Signalling Channel of Negative Interest Rates," CEPR Discussion Papers 14268, C.E.P.R. Discussion Papers.
- Oliver de Groot & Alexander Haas, 2021. "The signalling channel of negative interest rates," Economics Series Working Papers 956 JEL classification: E, University of Oxford, Department of Economics.
- Oliver de Groot & Alexander Haas, 2022. "The Signalling Channel of Negative Interest Rates," Discussion Papers of DIW Berlin 1990, DIW Berlin, German Institute for Economic Research.
- Gáti, Laura, 2023.
"Monetary policy & anchored expectations—An endogenous gain learning model,"
Journal of Monetary Economics, Elsevier, vol. 140(S), pages 37-47.
- Gáti, Laura, 2022. "Monetary policy & anchored expectations: an endogenous gain learning model," Working Paper Series 2685, European Central Bank.
- Sang‐Kun Bae & Ronald A. Ratti, 2008. "Conservative Central Banks and Nominal Growth, Exchange Rate and Inflation Targets," Economica, London School of Economics and Political Science, vol. 75(299), pages 549-568, August.
- Kabaca, Serdar & Maas, Renske & Mavromatis, Kostas & Priftis, Romanos, 2023.
"Optimal quantitative easing in a monetary union,"
European Economic Review, Elsevier, vol. 152(C).
- Serdar Kabaca & Renske Maas & Kostas Mavromatis & Romanos Priftis, 2020. "Optimal quantitative easing in a monetary union," Working Papers 697, DNB.
- Serdar Kabaca & Renske Maas & Kostas Mavromatis & Romanos Priftis, 2020. "Optimal Quantitative Easing in a Monetary Union," Staff Working Papers 20-49, Bank of Canada.
- Giannoni, Marc P. & Woodford, Michael, 2017.
"Optimal target criteria for stabilization policy,"
Journal of Economic Theory, Elsevier, vol. 168(C), pages 55-106.
- Michael Woodford & Marc P. Giannoni, 2010. "Optimal Target Criteria for Stabilization Policy," 2010 Meeting Papers 932, Society for Economic Dynamics.
- Marc P. Giannoni & Michael Woodford, 2010. "Optimal Target Criteria for Stabilization Policy," NBER Working Papers 15757, National Bureau of Economic Research, Inc.
- Woodford, Michael & Giannoni, Marc, 2010. "Optimal Target Criteria for Stabilization Policy," CEPR Discussion Papers 7719, C.E.P.R. Discussion Papers.
- Marc Giannoni & Michael Woodford, 2012. "Optimal target criteria for stabilization policy," Staff Reports 535, Federal Reserve Bank of New York.
- Günter Coenen & Carlos Montes‐Galdón & Frank Smets, 2023.
"Effects of State‐Dependent Forward Guidance, Large‐Scale Asset Purchases, and Fiscal Stimulus in a Low‐Interest‐Rate Environment,"
Journal of Money, Credit and Banking, Blackwell Publishing, vol. 55(4), pages 825-858, June.
- Günter Coenen & Carlos Montes-Galdón & Frank Smets, 2019. "Effects of State-Dependent Forward Guidance, Large-Scale Asset Purchases and Fiscal Stimulus in a Low-Interest-Rate Environment," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 19/983, Ghent University, Faculty of Economics and Business Administration.
- Smets, Frank & Coenen, Günter & Montes-Galdón, Carlos, 2021. "Effects of State-Dependent Forward Guidance, Large-Scale Asset Purchases and Fiscal Stimulus in a Low-Interest-Rate Environment," CEPR Discussion Papers 16050, C.E.P.R. Discussion Papers.
- Coenen, Günter & Montes-Galdón, Carlos & Smets, Frank, 2020. "Effects of state-dependent forward guidance, large-scale asset purchases and fiscal stimulus in a low-interest-rate environment," CFS Working Paper Series 639, Center for Financial Studies (CFS).
- Coenen, Günter & Montes-Galdón, Carlos & Smets, Frank, 2020. "Effects of state-dependent forward guidance, large-scale asset purchases and fiscal stimulus in a low-interest-rate environment," Working Paper Series 2352, European Central Bank.
- Matthieu Darracq Paries & Peter Karadi & Christoffer Kok & Kalin Nikolov, 2022. "The Impact of Capital Requirements on the Macroeconomy: Lessons from Four Macroeconomic Models of the Euro Area," International Journal of Central Banking, International Journal of Central Banking, vol. 18(5), pages 1-50, December.
- Christoph E. Boehm & Christopher L. House, 2014. "Optimal Taylor Rules in New Keynesian Models," NBER Working Papers 20237, National Bureau of Economic Research, Inc.
- Bernardino Adão & Isabel Correia & Pedro Teles, 2004.
"Monetary policy with single instrument feedback rules,"
Working Paper Series
WP-04-30, Federal Reserve Bank of Chicago.
- Pedro Teles & Isabel Correia & Bernardino Adao, 2007. "Monetary Policy with Single Instrument Feedback Rules," 2007 Meeting Papers 622, Society for Economic Dynamics.
- Correia, Isabel & Teles, Pedro & Adão, Bernardino, 2005. "Monetary Policy with Single Instrument Feedback Rules," CEPR Discussion Papers 4948, C.E.P.R. Discussion Papers.
- Bernardino Adão & Pedro Teles, 2004. "Monetary Policy with Single Instrument Feedback Rules," Working Papers w200419, Banco de Portugal, Economics and Research Department.
- Giannoni, Marc P., 2014.
"Optimal interest-rate rules and inflation stabilization versus price-level stabilization,"
Journal of Economic Dynamics and Control, Elsevier, vol. 41(C), pages 110-129.
- Marc Giannoni, 2012. "Optimal interest rate rules and inflation stabilization versus price-level stabilization," Staff Reports 546, Federal Reserve Bank of New York.
- Qin, Li & Sidiropoulos, Moïse & Spyromitros, Eleftherios, 2013.
"Robust monetary policy under model uncertainty and inflation persistence,"
Economic Modelling, Elsevier, vol. 30(C), pages 721-728.
- Li Qin & Moïse SIDIROPOULOS & Eleftherios Spyromitros, 2009. "Robust Monetary Policy under Model Uncertainty and Inflation Persistence," Working Papers of BETA 2009-09, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
- Li Qin & Moïse Sidiropoulos & Eleftherios Spyromitros, 2013. "Robust monetary policy under model uncertainty and inflation persistence," Post-Print hal-03692269, HAL.
More about this item
Keywords
dual mandate; estimated DSGE model; euro area; monetary policy frameworks; optimal policy;All these keywords.
JEL classification:
- C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
NEP fields
This paper has been announced in the following NEP Reports:- NEP-BAN-2024-05-20 (Banking)
- NEP-CBA-2024-05-20 (Central Banking)
- NEP-DGE-2024-05-20 (Dynamic General Equilibrium)
- NEP-EEC-2024-05-20 (European Economics)
- NEP-MON-2024-05-20 (Monetary Economics)
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecb:ecbwps:20242935. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Official Publications (email available below). General contact details of provider: https://edirc.repec.org/data/emieude.html .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.