期刊名称：Departmental Discussion Papers / University of Glasgow, Department of Economics
出版年度：2008
卷号：1
出版社：University of Glasgow, Department of Economics
摘要：While consumption habits have been utilised as a means of generating a humpshaped
output response to monetary policy shocks in sticky-price New Keynesian
economies, there is relatively little analysis of the impact of habits (particularly,
external habits) on optimal policy. In this paper we consider the implications of external
habits for optimal monetary policy, when those habits either exist at the level
of the aggregate basket of consumption goods (¡®superficial¡¯ habits) or at the level of
individual goods (¡®deep¡¯ habits: see Ravn, Schmitt-Grohe, and Uribe (2006)). External
habits generate an additional distortion in the economy, which implies that
the flex-price equilibrium will no longer be efficient and that policy faces interesting
new trade-offs and potential stabilisation biases. Furthermore, the endogenous
mark-up behaviour, which emerges when habits are deep, can also significantly affect
the optimal policy response to shocks, as well as dramatically affecting the
stabilising properties of standard simple rules.
