Jump to ContentJump to Main Navigation
Show Summary Details

The B.E. Journal of Macroeconomics

Editor-in-Chief: Cavalcanti, Tiago / Mertens, Karel

Ed. by Abraham, Arpad / Carceles-Poveda , Eva / Debortoli, Davide / Kambourov, Gueorgui / Lambertini, Luisa / Pavoni, Nicola / Ruhl, Kim / Nimark, Kristoffer / Wang, Pengfei


IMPACT FACTOR 2015: 0.164
5-year IMPACT FACTOR: 0.403

SCImago Journal Rank (SJR) 2015: 0.205
Source Normalized Impact per Paper (SNIP) 2015: 0.317
Impact per Publication (IPP) 2015: 0.222

Online
ISSN
1935-1690
See all formats and pricing

 


Select Volume and Issue
Loading journal volume and issue information...

30,00 € / $42.00 / £23.00

Get Access to Full Text

The Importance of Commitment in the New Keynesian Model

Jean-Paul Lam1

1University of Waterloo,

Citation Information: The B.E. Journal of Macroeconomics. Volume 10, Issue 1, ISSN (Online) 1935-1690, DOI: 10.2202/1935-1690.2088, November 2010

Publication History

Published Online:
2010-11-16

In the New Keynesian model, even if the central bank does not have an over-ambitious output target, policy under discretion leads to an inefficiency known as the stabilization bias. In this paper, using a New Keynesian model, we explore and quantify how a cost channel and multi-period data revisions affect the size of the stabilization bias. We find that the presence of a cost channel in the model increases the stabilization bias significantly. On the other hand, multi-period revisions to output and inflation reduce the inefficiency associated with discretionary policy.

Keywords: stabilization bias; discretion; commitment; cost-channel; information lags; data revisions

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

Comments (0)

Please log in or register to comment.