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policy should respond to stock prices for what concerns the determinacy and the learnability (E-stability) of the Rational … determinacy and the E-stability of the fundamental REE when the degree of LAMP is sufficiently large to generate an inverted … prices appear to perform better than more standard rules responding to output with respect to both equilibrium determinacy …
Persistent link: https://www.econbiz.de/10010664991
lead to determinacy and E-stability. Our results appear to be more prominent in economies characterized by a lower …
Persistent link: https://www.econbiz.de/10010900784
This paper evaluates different types of simple monetary policy rules according to the determinacy and the learnability … objective is to investigate whether responding to housing prices affects determinacy and learnability of rational expectations …
Persistent link: https://www.econbiz.de/10010941567
The paper examines the effect of trend productivity growth on the determinacy and learnability of equilibria under … growth rate relaxes the conditions for determinacy and learnability. Results are mixed for other policy rules. Under the … expectations-based rule, trend growth tightens the conditions for determinacy but it relaxes the conditions for learnability. Under …
Persistent link: https://www.econbiz.de/10010779383
to consumption externalities. For given wage rigidity, such rules are beneficial to equilibrium determinacy if households …
Persistent link: https://www.econbiz.de/10010681746
This paper evaluates different types of simple monetary policy rules according to the determinacy and learnability of … to investigate whether responding to housing prices affects determinacy and learnability of rational expectations …
Persistent link: https://www.econbiz.de/10009401305
The paper examines the effect of trend productivity growth on the determinacy and learnability of equilibria under … a higher trend growth rate relaxes the conditions for determinacy and learnability. Results are mixed for other policy … learnability. Under the lagged-data-based rule rule trend growth reduces the scope for determinacy and learnability. …
Persistent link: https://www.econbiz.de/10010279379
Occasionally binding constraints (OBCs) like the zero lower bound (ZLB) can lead to multiple equilibria, and so to belief-driven recessions. To aid in finding policies that avoid this, we derive existence and uniqueness conditions for otherwise linear models with OBCs. Our main result gives...
Persistent link: https://www.econbiz.de/10013168551
equilibrium observed for some commonly-studied monetary policy rules. We also find that inertia promotes learnability of …
Persistent link: https://www.econbiz.de/10005784818
to guarantee equilibrium determinacy and E-stability of the MSV representation. When instead the interest rate responds …-stability and determinacy, regardless of the timing of the rule. Preliminary results show that the optimal monetary policy is also E …
Persistent link: https://www.econbiz.de/10005342926