04876oam 22012494 450 991097247680332120250426110033.0978661382830997814623588851462358888978145279252114527925269781283515856128351585797814519850091451985002(CKB)3360000000443758(EBL)3014449(SSID)ssj0000941805(PQKBManifestationID)11514419(PQKBTitleCode)TC0000941805(PQKBWorkID)10963824(PQKB)10398653(OCoLC)694141109(IMF)WPIEE2006164(MiAaPQ)EBC3014449(IMF)WPIEA2006164WPIEA2006164(EXLCZ)99336000000044375820020129d2006 uf 0engur|n|---|||||txtccrInternational Policy Coordination and Simple Monetary Policy Rules /Wolfram Berger, Helmut Wagner1st ed.Washington, D.C. :International Monetary Fund,2006.1 online resource (28 p.)IMF Working Papers"June 2006."9781451864243 1451864248 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 modelsAggregate Factor Income DistributionimfCentral Banks and Their PoliciesimfConsumer price indexesimfConsumptionimfDeflationimfEconomicsimfIncome economicsimfIncomeimfInflationimfInternational Policy Coordination and TransmissionimfLabor economicsimfLabor Economics: GeneralimfLaborimfLabourimfMacroeconomicsimfMacroeconomics: ConsumptionimfMonetary PolicyimfOpen Economy MacroeconomicsimfPrice indexesimfPrice LevelimfProducer price indexesimfSavingimfWealthimfEconomic policyEconometric models.Monetary policyEconometric models.PricesEconometric models.Aggregate Factor Income DistributionCentral Banks and Their PoliciesConsumer price indexesConsumptionDeflationEconomicsIncome economicsIncomeInflationInternational Policy Coordination and TransmissionLabor economicsLabor Economics: GeneralLaborLabourMacroeconomicsMacroeconomics: ConsumptionMonetary PolicyOpen Economy MacroeconomicsPrice indexesPrice LevelProducer price indexesSavingWealthBerger Wolfram1816516Wagner Helmut120712International Monetary Fund.Research Dept.DcWaIMFBOOK9910972476803321International Policy Coordination and Simple Monetary Policy Rules4372648UNINA