Monetary policy under uncertainty and asymmetric information

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Project objective

Research objectives and content In my research I wish to study the effects of firms, workers and consumers' decisions on investment and consumption (and hence on the level of employment and wealth of an economy) under conditions of uncertainty, total or partial lack of information and incomplete financial markets. My objective is to assess analytically the effectiveness of monetary policy in such a framework, through the use of the General Equilibrium methodology and computer simulations. An approach which turn out to be, even if at the very beginning, very fruitful, Donati (1996) and Donati - Polemarchakis (1996) to understand the effects of monetary policy on consumption and investment decisions, on employment and on the aggregate welfare of an economy. Training content (objective, benefit and expected impact) In the literature, papers on monetary policy in general equilibrium are very theoretical: equilibria are not computed explicitly in numerical terms. My line of work, with the use of computer simulations, is in a direction of more realism and allows to understand the effectiveness of the policies pursued on each type of agent's choices. The functioning of a market economy with fiat" money, moreover, has remained, also in the literature, almost uncertain. "

Original text from CORDIS.

Participants

• UNIVERSITE CATHOLIQUE DE LOUVAIN · LOUVAIN-LA-NEUVECoordinatorBelgium
• Not availableCity levelItaly

Links

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