Citation

Discussion Paper Details

Please find the details for DP4083 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Poole in the New Keynesian Model

Author(s): Fabrice Collard and Harris Dellas

Publication Date: October 2003

Keyword(s): macroeconomic volatility, poole, targeting and welfare

Programme Area(s): International Macroeconomics

Abstract: We study the properties of alternative central bank targeting procedures within the standard New Keynesian model. We find that Poole?s famous insights concerning the output stabilization properties of money and interest-rate targeting obtain when intertemporal substitution is low, and that output volatility rankings do not induce similar welfare rankings. Unlike the popular presumption, money targeting always fares better for money demand shocks. For fiscal shocks, money targeting does better for low and worse for high degree of intertemporal substitution. The opposite pattern obtains for supply shocks.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=4083

Bibliographic Reference

Collard, F and Dellas, H. 2003. 'Poole in the New Keynesian Model'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=4083