Smoothed interest rate setting by central banks and staggered loan contracts

研究成果: Article査読

4 被引用数 (Scopus)

抄録

I investigate a new source of economic stickiness: namely, staggered loan interest rate contracts under monopolistic competition. This study introduces this mechanism into a standard new Keynesian model. Simulations show that a response to a financial shock is greatly amplified by the staggered loan contracts, although a response to a productivity, cost-push or monetary policy shock is not much affected. I derive an approximated loss function and analyse optimal monetary policy. Unlike other models, the function includes a quadratic loss of the first-order difference in loan rates. Thus, central banks have an incentive to smooth the policy rate.

本文言語English
ページ(範囲)162-183
ページ数22
ジャーナルEconomic Journal
125
582
DOI
出版ステータスPublished - 2015 2 1

ASJC Scopus subject areas

  • 経済学、計量経済学

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