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This is an entry for The New Palgrave Dictionary of Economics, 2nd Ed.
Persistent link: https://www.econbiz.de/10010293471
Economists working with numerical solutions to the optimal consumption/saving problem under uncertainty have long known that there are quantitatively important interactions between liquidity constraints and precautionary saving behavior This paper provides the analytical basis for those...
Persistent link: https://www.econbiz.de/10010293505
We analyze monetary policy in a New Keynesian model with durable and non-durable goods each with a separate degree of price rigidity. The model behavior is governed by two New Keynesian Phillips Curves. If durable goods are sufficiently long-lived we obtain an intriguing variant of the...
Persistent link: https://www.econbiz.de/10011776847