国际经济学workshop

题目：Choice of Policy Instrument and Optimal Monetary Policy in Open Economies

主讲人：Jiao Wang王娇 (The University of Melbourne)

主持老师：余淼杰、余昌华（北京大学国家发展研究院）

时间：2021年5月11日（周二）上午10:00-12:00

线下：朗润园致福轩会议室

线上：加入 Zoom 会议https://zoom.com.cn/j/95365409407?pwd=cVVFYzZRRFBQVmwycTE2UTBHWTh2dz09

会议号：953 6540 9407

密码：513486

摘要：This paper focuses on the noncooperative policy game specified by choice of policy instrument for implementing optimal monetary policy in a two-country dynamic stochastic general equilibrium model. It examines four options of policy instruments including the producer price index inflation rate, the consumer price index inflation rate, the import price inflation rate and the nominal interest rate. It shows that choosing different policy instruments generally leads to different equilibria and, in particular, choosing the nominal interest rate results in equilibrium indeterminacy. In addition, the welfare ranking of these policy instruments depends on a country’s degree of openness which is measured as the weight assigned to imported goods in the consumers’ utility function in consumption. In less open countries, domestically produced goods carry a relatively higher weight. For these less open countries, choosing the producer price index inflation rate induces a larger welfare cost from noncooperation than choosing the consumer price index inflation rate would. Choosing the consumer price index inflation rate in turn causes a larger welfare cost than choosing the import price inflation rate. Conversely, the reverse is true when countries are more open. These results shed light on the important role that choice of policy instrument plays in determining the equilibrium outcomes, to which policy makers should pay special attention when implementing optimal monetary policy under noncooperation.

主讲人简介：Jiao Wang (王姣 in Chinese) is currently working as Research Fellow in the macro team at Melbourne Institute of Applied Economic and Social Research, Faculty of Business and Economics, The University of Melbourne. She obtained Ph.D. degree at the Australian National University (ANU) in December 2017. She completed Master's degree in International and Development Economics at ANU and received the Helen Hughes Master Degree Prize for achieving the highest grades in class (top 1 out of 200). She graduated from Peking University with B.A. in Economics and B.S. in Physics, from China Center for Economic Research (CCER) and Department of Physics, respectively. Her fields of research are Monetary Policy, Macroprudential Policy, Open Economy Macroeconomics and Chinese Economy.