Workshop on Optimal Monetary Policy

Norges Bank, November 21 and 22 2008

The aim of the workshop is to bring together researchers and practitioners working on optimal monetary policy to discuss ongoing research, stimulate more research and discuss how recent advances can be applied to monetary policy in practice.

Friday, November 21, 2008

Welcome address, Jan F. Qvigstad, Deputy Governor Norges Bank

Keynote speech (pdf)
Lars E.O. Svensson, Deputy Governor Sveriges Riksbank

Session 1 Optimal monetary policy in estimated DSGE models

Optimal monetary policy in a medium-scale model of the euro area (pdf)
Presenters: Stefano Neri, Banca d’Italia and Tiziano Robele, Banca d’Italia

Discussant: Pelin Ilbas, Norges Bank
Presentation (pdf)

Estimating a DSGE model for Norway under optimal policy (pdf)
Presenters: Ida Wolden Bache, Leif Brubakk and Junior Maih, Norges Bank

Discussant: Jesper Lindé, Board of Governors of the Federal Reserve System
Presentation (pdf)

Session 2: Discretion, commitment and delegation

Timeless perspective policymaking: when is discretion superior? (pdf)
Presenter: Richard Dennis, Federal Reserve Bank of San Francisco

Discussant: Andrea Tambalotti, Federal Reserve Bank of New York
Presentation (pdf)

The gains from delegation revisited: price-level targeting, speed-limit and interest rate smoothing policies (pdf)
Presenters: Andrew P. Blake, Bank of England, Tatiana Kirsanova, University of Exeter and Tony Yates, Bank of England

Discussant: Lutz Weinke, Duke University
Presentation (pdf)

Session 3: Optimal policy in open economies

Optimal monetary policy and the sources of local-currency price stability
Presenters: Giancarlo Corsetti, University of Rome, Luca Dedola, European Central Bank and Sylvain Leduc, Federal Reserve Board of San Francisco
Discussant: Rodrigo Caputo, Banco Central de Chile

Monetary policy under alternative asset market structures: the case of a small open economy (pdf)
Presenter: Bianca De Paoli, Bank of England

Discussant: Luca Guerrieri, Board of Governors of the Federal Reserve System
Presentation (pdf)

Saturday, November 22, 2008

Session 4: Robustness and optimal policy

Learning, expectations formation, and the pitfalls of optimal control monetary policy (pdf)
Presenters: Athanasios Orphanides, Central Bank of Cyprus and John C. Williams, Federal Reserve Bank of San Francisco

Discussant: Krisztina Molnar
Presentation (pdf)

Welfare-maximizing monetary policy under parameter uncertainty (pdf)
Presenters: Rochelle M. Edge, Board of Governors of the Federal Reserve System, Thomas Laubach, Goethe University Frankfurt and John C. Williams, Federal Reserve Bank of San Francisco

Discussant: Kevin Sheedy, London School of Economics
Presentation (pdf)

Session 5: Optimal monetary policy and credit markets

Optimal monetary policy with credit augmented liquidity cycles (pdf)
Presenter: Ester Faia, University of Roma at Tor Vergata

Discussant: Ander Perez, Universitat Pompeu Fabra
Presentation (pdf)

Optimal monetary policy in a model of the credit channel (pdf)
Presenters: Fiorella De Fiore and Oreste Tristani, European Central Bank

Discussant: Tony Yates, Bank of England
Presentation (pdf)

Session 6: Methods of optimal policy

Analysis of optimal inflation under discretion using a projection method (pdf)
Presenters: Gary Anderson, Jinill Kim and Tack Yun, Board of Governors of the Federal Reserve System

Discussant: Roberto Billi, Federal Reserve Bank of Kansas City
Presentation (pdf)

Recursive optimal policy design: second order approximation decision rules and welfare
Presenters: Michael K. Johnston, Bank of Canada, Denny Lie and Robert G. King, Boston University
Discussant: Junior Maih, Norges Bank

Linear-quadratic approximation to unconditionally optimal policy: the distorted steadystate
Presenters: Tatiana Damjanovic, Vladislav Damjanovic and Charles Nolan, University of St. Andrews

Discussant: Christian Jensen, University of South Carolina 
Presentation (pdf)

Program Committee: Ragna Alstadheim (Norges Bank), Krisztina Molnar (Norwegian School of Economics and Business Administration), Øistein Røisland (Norges Bank), Kristin Solberg-Johansen (Norges Bank).

Published 24 October 2008 15:14