Structural Breaks and Optimal Monetary Policy

Mattesini FabrizioNisticò Salvatore
CEIS Working Papers
This paper analyzes the optimal behavior of the Central Bank in an economy characterized by balanced growth. Consistently with the view of Perron (1989) and di®erently from the standard approach in DNK literature, we model the dynamics of productivity as
Number: 237
Date: Saturday, July 1, 2006
Revision Date: Saturday, July 1, 2006