Optimal policy with dispersed information and uncertain monetary transmission

Gianluca Femminis; Giulio Piccirilli

doi:10.1016/j.econlet.2023.111204

Optimal policy with dispersed information and uncertain monetary transmission

Gianluca Femminis^*, Giulio Piccirilli

^*Autore corrispondente per questo lavoro

Risultato della ricerca: Contributo in rivista › Articolo in rivista

Abstract

In a setting with dispersed information, monopolistic competition and sticky-prices, a policy authority uncertain about the monetary transmission mechanism reacts prudently to supply shocks. This induces producers to ascribe an excessive importance to their private information when setting prices. To correct the ensuing inefficiency a state-contingent fiscal policy is required. (c) 2023 Elsevier B.V. All rights reserved.

Lingua originale	English
pagine (da-a)	111204-111208
Numero di pagine	4
Rivista	Economics Letters
Volume	46
DOI	https://doi.org/10.1016/j.econlet.2023.111204
Stato di pubblicazione	Pubblicato - 2023

Keywords

Monetary transmission
Parameter uncertainty
Fiscal policy

Accesso al documento

10.1016/j.econlet.2023.111204

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title = "Optimal policy with dispersed information and uncertain monetary transmission",

abstract = "In a setting with dispersed information, monopolistic competition and sticky-prices, a policy authority uncertain about the monetary transmission mechanism reacts prudently to supply shocks. This induces producers to ascribe an excessive importance to their private information when setting prices. To correct the ensuing inefficiency a state-contingent fiscal policy is required. (c) 2023 Elsevier B.V. All rights reserved.",

keywords = "Monetary transmission, Parameter uncertainty, Fiscal policy, Monetary transmission, Parameter uncertainty, Fiscal policy",

author = "Gianluca Femminis and Giulio Piccirilli",

year = "2023",

doi = "10.1016/j.econlet.2023.111204",

language = "English",

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journal = "Economics Letters",

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AU - Femminis, Gianluca

AU - Piccirilli, Giulio

PY - 2023

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AB - In a setting with dispersed information, monopolistic competition and sticky-prices, a policy authority uncertain about the monetary transmission mechanism reacts prudently to supply shocks. This induces producers to ascribe an excessive importance to their private information when setting prices. To correct the ensuing inefficiency a state-contingent fiscal policy is required. (c) 2023 Elsevier B.V. All rights reserved.

KW - Monetary transmission

KW - Parameter uncertainty

KW - Fiscal policy

KW - Monetary transmission

KW - Parameter uncertainty

KW - Fiscal policy

UR - http://hdl.handle.net/10807/267639

U2 - 10.1016/j.econlet.2023.111204

DO - 10.1016/j.econlet.2023.111204

M3 - Article

SN - 0165-1765

VL - 46

SP - 111204

EP - 111208

JO - Economics Letters

JF - Economics Letters

ER -

Optimal policy with dispersed information and uncertain monetary transmission

Abstract

Keywords

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