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Structural Uncertainty and Monetary Stabilization Policy
Birkbeck College.
1983 (engelsk)Rapport (Annet vitenskapelig)
Abstract [en]

The article examines what the presence of structural uncertainty implies for the formulation of monetary stabilization policy in rational-expectations models of the Sargent-Wallace type. The policy ineffectiveness proposition if Sargent and Wallace is interpreted as a special case of Theil's certainty equivalence theorem. This theorem breaks down when there is structural uncetainty of the multiplicative-disturbance variety. Thereby a rationale for monetary stabilization policy under rational expectations is provided.

sted, utgiver, år, opplag, sider
Stockholm: IIES , 1983. , s. 26
Serie
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 250
HSV kategori
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URN: urn:nbn:se:su:diva-41481OAI: oai:DiVA.org:su-41481DiVA, id: diva2:330443
Merknad
Published in connection with a visit at the IIESTilgjengelig fra: 2010-07-15 Laget: 2010-07-15 Sist oppdatert: 2010-07-15

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