2021年11月
How robustness can change the desirability of speed limit policy
Scottish Journal of Political Economy
- 巻
- 68
- 号
- 5
- 開始ページ
- 553
- 終了ページ
- 570
- 記述言語
- 英語
- 掲載種別
- 研究論文(学術雑誌)
- DOI
- 10.1111/sjpe.12268
This paper investigates a robust monetary policy under speed limit policy when a central bank fears model misspecification. We show that the persistence of the output gap becomes small with the robust speed limit policy. The low persistence of the output gap contributes to mitigating the variance of the output gap. Also, with a robust policy, social losses are lower under the speed limit policy than under precommitment. Our results suggest that adding the growth of the output gap to the central bank’s objectives is effective when the worst-case scenario is realized.
- リンク情報
- ID情報
-
- DOI : 10.1111/sjpe.12268
- ISSN : 0036-9292
- eISSN : 1467-9485
- Web of Science ID : WOS:000610794000001