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Part 1: Document Description
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Citation |
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Title: |
Replication data for: Monetary Policy for Inattentive Economies |
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Identification Number: |
doi:10.7910/DVN/KPIEZX |
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Distributor: |
Harvard Dataverse |
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Date of Distribution: |
2008-12-17 |
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Version: |
1 |
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Bibliographic Citation: |
Ricardo Reis; Laurence Ball; N. Gregory Mankiw, 2008, "Replication data for: Monetary Policy for Inattentive Economies", https://doi.org/10.7910/DVN/KPIEZX, Harvard Dataverse, V1 |
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Citation |
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Title: |
Replication data for: Monetary Policy for Inattentive Economies |
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Identification Number: |
doi:10.7910/DVN/KPIEZX |
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Authoring Entity: |
Ricardo Reis (Columbia University) |
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Laurence Ball (Johns Hopkins University) |
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N. Gregory Mankiw (Harvard University) |
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Date of Production: |
2005 |
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Distributor: |
Harvard Dataverse |
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Distributor: |
Ricardo Reis |
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Date of Deposit: |
2007-07 |
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Date of Distribution: |
2007 |
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Holdings Information: |
https://doi.org/10.7910/DVN/KPIEZX |
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Study Scope |
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Abstract: |
This paper is a contribution to the analysis of optimal monetary policy. It begins with a critical assessment of the existing literature, arguing that most work is based on implausible models of inflation-output dynamics. It then suggests that this problem may be solved with some recent behavioral models, which assume that price setters are slow to incorporate macroeconomic information into the prices they set. A specific such model is developed and used to derive optimal policy. In response to shocks to productivity and aggregate demand, optimal policy is price level targeting. Base drift in the price level, which is implicit in the inflation targeting regimes currently used in many central banks, is not desirable in this model. When shocks to desired markups are added, optimal policy is flexible targeting of the price level. That is, the central bank should allow the price level to deviate from its target for a while in response to these supply shocks, but it should eventually return the price level to its target path. Optimal policy can also be described as an elastic price standard: the central bank allows for the price level to deviate from its target when output is expected to deviate from its natural rate. |
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Methodology and Processing |
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Sources Statement |
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Data Access |
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Notes: |
<a href="http://creativecommons.org/publicdomain/zero/1.0">CC0 1.0</a> |
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Other Study Description Materials |
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Related Publications |
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Citation |
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Title: |
Reis, Ricardo. 2005. "Monetary Policy for Inattentive Economies", with Laurence Ball and N. Gregory Mankiw. Journal of Monetary Economics. 52, 703–725. <a href="http://www.princeton.edu/~rreis/papers/bmr.pdf" target= "_new"> article available here </a> |
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Bibliographic Citation: |
Reis, Ricardo. 2005. "Monetary Policy for Inattentive Economies", with Laurence Ball and N. Gregory Mankiw. Journal of Monetary Economics. 52, 703–725. <a href="http://www.princeton.edu/~rreis/papers/bmr.pdf" target= "_new"> article available here </a> |
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Label: |
BMR_final.nb |
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Text: |
Mathematica file containing the program and data that produce all the figures in this study |
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Notes: |
text/plain; charset=US-ASCII |