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help:optimal moentary policy in BGG(1999)model

PostPosted: Sun Nov 18, 2012 1:30 pm
by lipetty
Hello,everybody.
I am interested in the opitmal monetary policy with the bgg framework.
Should I take the Linear-Quadratic approximationsof the utility of the household for the plan objective ?but how?are there some paper and dynare code with details i missed?
can you help me ? thank you in advance!

Re: help:optimal moentary policy in BGG(1999)model

PostPosted: Mon Nov 19, 2012 3:55 pm
by bigbigben
Check the paper by Chistiano, Motto and Rastagno

http://faculty.wcas.northwestern.edu/~l ... mirage.htm

Re: help:optimal moentary policy in BGG(1999)model

PostPosted: Sun Nov 25, 2012 1:23 pm
by lipetty
thank you very much.
but i also have some questions:
1.when i analyse the optimal monetary policy ,do i have to take the linear approxmation of the utility? but Chistiano seems not to do that.
2.the dynare code for the notes seems not to work(especially the ceebgg.mod).

so,i seems a stupid idiot,but i also hope for your answer.
thank you for your patient!