04657oam 22011534 450 991078840710332120230828235716.01-4623-5888-81-4527-9252-61-283-51585-71-4519-8500-29786613828309(CKB)3360000000443758(EBL)3014449(SSID)ssj0000941805(PQKBManifestationID)11514419(PQKBTitleCode)TC0000941805(PQKBWorkID)10963824(PQKB)10398653(OCoLC)694141109(MiAaPQ)EBC3014449(IMF)WPIEE2006164(EXLCZ)99336000000044375820020129d2006 uf 0engur|n|---|||||txtccrInternational Policy Coordination and Simple Monetary Policy Rules /Wolfram Berger, Helmut WagnerWashington, D.C. :International Monetary Fund,2006.1 online resource (28 p.)IMF Working Papers"June 2006."1-4518-6424-8 Includes bibliographical references.""Contents""; ""I. INTRODUCTION""; ""II. THE MODEL""; ""III. WELFARE, OUTPUT AND CONSUMPTION ""; ""IV. OPTIMAL MONETARY POLICY AND POLICY COORDINATION ""; ""V. SIMPLE RULES AND WELFARE""; ""VI. CONCLUSIONS""; ""REFERENCES""This paper studies the optimal design of monetary policy in an optimizing two-country sticky price model. We suppose that the production sequence of final consumption goods stretches across both countries and is associated with vertical trade. Prices of final consumption goods are sticky in the consumer's currency. Pursuing an inward-looking policy, as suggested in recent work, is not optimal in this set-up. We also ask which simple, i.e. non-optimal, targeting rule best supports the welfare maximizing policy. The results hinge critically on the degree of price flexibility and the relative importance of cost-push and productivity shocks. In many cases, a strict targeting of price indices like producer or consumer price indices is dominated by rules that allow for some fluctuations in prices such as nominal income or monetary targeting.IMF Working Papers; Working Paper ;No. 2006/164Economic policyEconometric modelsMonetary policyEconometric modelsPricesEconometric modelsMacroeconomicsimfOpen Economy MacroeconomicsimfInternational Policy Coordination and TransmissionimfMonetary PolicyimfCentral Banks and Their PoliciesimfMacroeconomics: ConsumptionimfSavingimfWealthimfPrice LevelimfInflationimfDeflationimfLabor Economics: GeneralimfAggregate Factor Income DistributionimfLabourimfincome economicsimfConsumptionimfConsumer price indexesimfProducer price indexesimfLaborimfIncomeimfEconomicsimfPrice indexesimfLabor economicsimfEconomic policyEconometric models.Monetary policyEconometric models.PricesEconometric models.MacroeconomicsOpen Economy MacroeconomicsInternational Policy Coordination and TransmissionMonetary PolicyCentral Banks and Their PoliciesMacroeconomics: ConsumptionSavingWealthPrice LevelInflationDeflationLabor Economics: GeneralAggregate Factor Income DistributionLabourincome economicsConsumptionConsumer price indexesProducer price indexesLaborIncomeEconomicsPrice indexesLabor economicsBerger Wolfram1574028Wagner Helmut120712International Monetary Fund.Research Dept.DcWaIMFBOOK9910788407103321International Policy Coordination and Simple Monetary Policy Rules3850042UNINA