Economics Seminar: Transmission Lags and Optimal Monetary Policy

When?

Wednesday 23 February 2011, 16:00 to 17:00

Where?

04AD00

Open to:

Public, Staff, Students

Speaker:

Dr Alessandro Flamini (University of Sheffield)

Dr Alessandro Flamini (University of Sheffield)

"Transmission Lags and Optimal Monetary Policy"

Abstract

Real world monetary policy features long and variable lags in the transmission of the policy to the economy. Most of the policy models, however, abstracts from policy lags. This paper presents a New-Keynesian model where transmission lags are determined by a two-sector supply side of the economy. The paper shows that optimal monetary policy depends crucially on the features of the transmission lag.