Persistence, the Transmission Mechanism and Robust Monetary Policy

32 Pages Posted: 2 Dec 2003

See all articles by Ignazio Angeloni

Ignazio Angeloni

Italian Finance Ministry - International Financial Relations

Günter Coenen

European Central Bank (ECB)

Frank Smets

European Central Bank (ECB); Ghent University - Department of General Economics

Date Written: August 2003

Abstract

In this paper we first explore the impact of nominal and real persistence on the transmission process of various shocks in an estimated DSGE model of euro area. We then analyse its impact on optimal monetary policy and investigate the performance of various monetary policies when the policy maker is uncertain about the degree of nominal and real persistence.

Keywords: Persistence, transmission process, monetary policy, euro area

JEL Classification: E4, E5

Suggested Citation

Angeloni, Ignazio and Coenen, Günter and Smets, Frank, Persistence, the Transmission Mechanism and Robust Monetary Policy (August 2003). Available at SSRN: https://ssrn.com/abstract=457322 or http://dx.doi.org/10.2139/ssrn.457322

Ignazio Angeloni (Contact Author)

Italian Finance Ministry - International Financial Relations ( email )

Via XX Settembre 97
Rome, Rome 00187
Italy

Günter Coenen

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany
+49 69 1344 7887 (Phone)
+49 69 1344 6575 (Fax)

Frank Smets

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Ghent University - Department of General Economics ( email )

Hoveniersberg 24
Ghent, 9000
Belgium