Berentsen, Aleksander; Waller, Christopher J. - Federal Reserve Bank of St. Louis - 2009
, such as price or wage stickiness, that allows
monetary policy to have real e�ects. A key policy recommendation coming out … of NK models
is that �good�monetary policy requires guiding in�ation expectations in an appropriate
manner.1 In order to … pains to
convince markets that they could unwind these injections when needed. This description of
the monetary policy …