-period Taylor model, discretionary policy in the Calvo model does not accommodate predetermined prices in a way that inevitably …

of the housing price path, but they do not affect the growth rate of housing prices. …

The relative prices of different categories of consumption goods have been trending over time. Assuming they are … exogenous with respect to monetary policy, these trends imply that monetary policy cannot stabilize the prices of all … consumption categories. If prices are sticky, monetary policy then must trade off relative price distortions within different …

find that the equilibrium prices of arbitrary contingent claims to future currency differ from those from one-good cash …

multiplicity is a form of policy complementarity. Specifically, prices set in the current period embed expectations about future … policy, and actual future policy responds to these same prices. For a range of values of the fundamental state variable — a … ratio of predetermined prices — there is complementarity between actual and expected policy, and multiple equilibria occur …

preliminary conclusions. Equity prices are a misleading guide for interest rate policy. Monetary policy tactics protect market …