Showing 1 - 2 of 2
We examine global dynamics under infinite-horizon learning in New Keynesian models where the interest-rate rule is subject to the zero lower bound. As in Evans, Guse and Honkapohja (2008), the intended steady state is locally but not globally stable. Unstable deflationary paths emerge after...
Persistent link: https://www.econbiz.de/10010584391
Using New Keynesian models, we compare Friedman’s k-percent money supply rule to optimal interest rate setting, with …
Persistent link: https://www.econbiz.de/10005423681