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Since the publication of Keynes' "General Theory of Employment, Interest, and Money" in 1936 many new ideas and …
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The aim of this paper is to solve the inconsistency problem à la Barro and Gordon within a New Keynesian model and to derive time-consistent (stable) interest rate rules of Taylor-type. We find a multiplicity of stable rules. In contrast to the Kydland/Prescott-Barro/Gordon approach,...
Persistent link: https://www.econbiz.de/10003946058
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The aim of this paper is to solve the inconsistency problem a la Barro and Gordon within a New Keynesian model and to derive time-consistent (stable) interest rate rules of Taylor-type. We find a multiplicity of stable rules. In contrast to the Kydland/Prescott-Barro/Gordon approach,...
Persistent link: https://www.econbiz.de/10013145307
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