A New Approach for Modeling and Understanding Optimal Monetary Policy

Posted: 1 Jun 2010

See all articles by Katarzyna Romaniuk

Katarzyna Romaniuk

Université de Paris 1 Panthéon-Sorbonne; Xi'an Jiaotong-Liverpool University (XJTLU)

Date Written: September 28, 2007

Abstract

The coefficients of Taylor (1993)’s monetary policy rule can be seen as portfolio weights. Their optimal values are derived by adapting Merton (1971)’s asset allocation model.

Keywords: optimal monetary policy, portfolio choice, stochastic dynamic programming

JEL Classification: C61, E52, G11

Suggested Citation

Romaniuk, Katarzyna, A New Approach for Modeling and Understanding Optimal Monetary Policy (September 28, 2007). Economics Letters, Vol. 100, No. 1, 2008, Available at SSRN: https://ssrn.com/abstract=1618327

Katarzyna Romaniuk (Contact Author)

Université de Paris 1 Panthéon-Sorbonne ( email )

17, rue de la Sorbonne
Paris, 75005
France

Xi'an Jiaotong-Liverpool University (XJTLU) ( email )

111 Renai Road, SIP
Suzhou, JiangSu province 215123
China

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