Based on Sticky Information of the Taylor Rule and Its Applicability in China (12JJD790015)

Based on Sticky Information of the Taylor Rule and Its Applicability in China (12JJD790015)


Leader Jin Cheng-xiao

Members Jin Cheng-xiao,Zhu Pei-jin

Origin N/A

Fund 1

Duration 2013.1-2013.1

Introduction

The development of new macroeconomic theory make we begin to re-examine the monetary rules effect under the condition of sticky information.  In this paper, we study Chinese economy in the framework of sticky information general equilibrium which includes goods labor and financial markets.  We think agents update their information sets sporadically, when setting prices, wages, and consumption.  At the same time, we also assume that the monetary authorities to interest rate rules as an operation tool, and analyze all sorts of shock pulse response function and variance decomposition, under the calibration and the DSGE model.  It finds that: (1) productivity change is most sensitive; (2) whether monetary policy is tight or not depends different states; (3) the labor supply and output (gap) caused by the increase of economic effect is similar, but different amplitude size; (4) the product prices and wages in a variety of factors impact effect little; (5) The variable fluctuations is mainly

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