Interest rate policy and supply-side adjustment dynamics

Schmid, Kai Daniel; Kienzler, Daniel

Interest rate policy and supply-side adjustment dynamics

dc.contributor.author	Schmid, Kai Daniel	de
dc.contributor.author	Kienzler, Daniel	de
dc.date.accessioned	2024-04-08T08:44:54Z
dc.date.available	2024-04-08T08:44:54Z
dc.date.created	2011-02-09
dc.date.issued	2010
dc.description.abstract	In contrast to the present consensus view of stabilization policy, theoretical and empirical research strongly support the consideration of supply-side adjustment to pronounced variations of factor-utilization in order to trace a more realistic pattern of macroeconomic adjustment dynamics within simulation studies. Against this background, our paper seeks to illuminate the relevance of endogenous supply-side adjustment for monetary policy research. We modify a basic New Keynesian model by explicitly considering demand-side stimulus on the evolution of productive capacity and analyze stability, impulse response, and welfare issues if the central bank follows a simple monetary policy rule. Thereby, we control for the robustness of our policy implications by various states of output gap mismeasurement the central bank might be confronted with. We find that, in contrast to a basic New Keynesian Model, output gap stabilization plays a more prominent role when potential output is endogenous.	en
dc.identifier.swb	337205930
dc.identifier.uri	https://hohpublica.uni-hohenheim.de/handle/123456789/5426
dc.identifier.urn	urn:nbn:de:bsz:100-opus-5442
dc.language.iso	eng
dc.relation.ispartofseries	Hohenheimer Diskussionsbeiträge; 324
dc.rights.license	publ-ohne-pod	en
dc.rights.license	publ-ohne-pod	de
dc.rights.uri	http://opus.uni-hohenheim.de/doku/lic_ubh.php
dc.subject	Monetary policy	en
dc.subject	Factor-utilization	en
dc.subject	Endogenous potential output	en
dc.subject	Output gap mismeasurement	en
dc.subject.ddc	330
dc.subject.gnd	Geldpolitik	de
dc.title	Interest rate policy and supply-side adjustment dynamics	de
dc.type.dcmi	Text	de
dc.type.dini	WorkingPaper	de
local.access	uneingeschränkter Zugriff	en
local.access	uneingeschränkter Zugriff	de
local.bibliographicCitation.publisherPlace	Universität Hohenheim	de
local.faculty.number	3	de
local.institute.number	520alt	de
local.opus.number	544
local.series.issueNumber	324
local.series.title	Hohenheimer Diskussionsbeiträge
local.university	Universität Hohenheim	de
local.university.faculty	Fakultät Wirtschafts- und Sozialwissenschaften	de
local.university.institute	Institut für Volkswirtschaftslehre (bis 2010)	de

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