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Persistence, the transmission mechanism and robust monetary policy

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  • Backé, Peter
  • Smets, Frank
  • Coenen, Günter

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. JEL Classification: E4, E5

Suggested Citation

  • Backé, Peter & Smets, Frank & Coenen, Günter, 2003. "Persistence, the transmission mechanism and robust monetary policy," Working Paper Series 250, European Central Bank.
    • Handle: RePEc:ecb:ecbwps:2003250
    Note: 508510
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    File URL: https://www.ecb.europa.eu//pub/pdf/scpwps/ecbwp250.pdf
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    More about this item

    Keywords

    euro area; monetary policy; persistence; transmission process;
    All these keywords.

    JEL classification:

    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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