Producers’ expectations and the business cycle
Rousakis, Michael (2011) Producers’ expectations and the business cycle. In: XVI Workshop on Dynamic Macroeconomics, Vigo, Spain, 29 Jun-01 Jul 2011 (Unpublished)Full text not available from this repository.
Official URL: http://www.aueb.gr/conferences/Crete2011/PhD/Rousa...
This paper isolates the role of expectations on the producers' side. Positive shocks to expectations, which can be due to shocks to producers' private information, transient productivity shocks, or positive `surprise' monetary policy shocks, are shown to cause increases in employment, output, and prices, but be in ationary only on impact and deflationary thereafter. A Friedman-rule emerges as the optimal monetary policy in this framework; however, a policy as aggressive on in ation as possible is a second-best policy.
|Item Type:||Conference Item (Paper)|
|Subjects:||J Political Science > JC Political theory|
|Divisions:||Faculty of Social Sciences > Economics|
|Official Date:||29 June 2011|
|Status:||Not Peer Reviewed|
|Version or Related Resource:||Rousakis, Michael (2011). Producers’ expectations and the business cycle. In: 10th Conference on Research in Economic Theory and Econometrics. Milos, Crete, 10-14 Jul 2011.|
|Conference Paper Type:||Paper|
|Title of Event:||XVI Workshop on Dynamic Macroeconomics|
|Type of Event:||Conference|
|Location of Event:||Vigo, Spain|
|Date(s) of Event:||29 Jun-01 Jul 2011|
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