DIFFERENTIAL INFORMATION AND OPTIMAL FEEDBACK POLICY IN NEW CLASSICAL MACROECONOMIC MODELS Academic Article uri icon

abstract

  • We demonstrate the optimality of feedback policy in a new classical model without impediments to market clearing. This result is robust. The monetary authority does not have superior information: All agents are aware of the policy maker's actions and know the policy rules. The model is Lucas structural in the sense that the reduced form parameters for price and output do not depend on the policy parameters. Finally, the results do not require the persistence of the effects of the shocks either through the stochastic structure or other propagation mechanisms. 1993.

published proceedings

  • JOURNAL OF MACROECONOMICS

author list (cited authors)

  • BRADLEY, M. D., & JANSEN, D. W.

complete list of authors

  • BRADLEY, MD||JANSEN, DW

publication date

  • January 1, 1993 11:11 AM