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Papers by Falk Mazelis


Abstract
This paper presents a toolkit for generating optimal policy projections. It makes five contributions. First, the toolkit requires a minimal set of inputs: only a baseline projection for target and instrument variables and impulse responses of those variables to policy shocks. Second, it solves optimal policy projections under commitment, limited-time commitment, and discretion. Third, it handles multiple policy instruments. Fourth, it handles multiple constraints on policy instruments such as a lower bound on the policy rate and an upper bound on asset purchases. Fifth, it allows alternative approaches to address the forward guidance puzzle. The toolkit that accompanies this paper is Dynare compatible, which facilitates its use. Examples replicate existing results in the optimal monetary policy literature and illustrate the usefulness of the toolkit for highlighting policy trade-offs. We use the toolkit to analyse US monetary policy at the height of the Great Financia ....

City Of , United Kingdom , Humboldt University Berlin , European Central Bank , Collaborative Research Center , Monetary Policy Strategy Division , Princeton University Bendheim Center , Student Research Collaborator , Institute For Economic Theory , Monetary Policy , German Research Foundation , Investment Banking Division , Barclays Investment Bank , Transaction Services , Policy Strategy Division , Directorate General Monetary Policy , European Central , Research Center , Economic Theory , Humboldt University , Bendheim Center , Systemic Risk Board , Research Foundation , Banking Division , நகரம் ஆஃப் , ஒன்றுபட்டது கிஂக்டம் ,