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Implications of ERM2 for Poland's monetary policy

✍ Scribed by Lucjan T. Orlowski; Krzysztof Rybinski


Book ID
116424656
Publisher
Elsevier Science
Year
2006
Tongue
English
Weight
394 KB
Volume
30
Category
Article
ISSN
0939-3625

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A small forward-looking model of the euro-area economy is used to investigate the implications of incomplete information about potential output for the conduct of monetary policy. Three results emerge. First, under optimal monetary policy, output gap uncertainty leads to persistent deviations betwee