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Determinacy of Interest Rate Rules with Bond Transaction Services in a Cashless Economy

Marzo, Massimiliano; Zagaglia, Paolo - Nationalekonomiska institutionen, Stockholms Universitet - 2008

Canzoneri and Diba (2004) show that the Taylor principle is not a panacea for equilibrium determinacy in a model where …

Persistent link: https://www.econbiz.de/10005207069

A Proof of Determinacy in the New-Keynesian Sticky Wages and Prices Model

Franke, Reiner; Flaschel, Peter - Institut für Volkswirtschaftslehre, … - 2008

The paper is concerned with determinacy in a version of the New-Keynesian model that integrates imperfect competition …?s continuous-time counterpart is mathematically tractable and its determinacy results carry over to the period model at least if … the period is sufficiently short. This being understood, it is proved that determinacy is (essentially) ensured if an …

Persistent link: https://www.econbiz.de/10005082919

Limited Asset Market Participation: Does it Really Matter for Monetary Policy?

Ascari, Guido; Colciago, Andrea; Rossi, Lorenza - Dipartimento di Scienze Economiche e Aziendali, … - 2010

determinacy for any empirically plausible degree of LAMP; ii) the effect of LAMP for the design of optimal monetary policy are …

Persistent link: https://www.econbiz.de/10009651066

A Case for Interest Rate Inertia in Monetary Policy

Bask, Mikael - Nationalekonomiska Institutionen, Uppsala Universitet - 2011

We argue that it is not necessary for the central bank to react to the exchange rate to have a desirable outcome in the economy. Indeed, when the Taylor rule includes contemporaneous data on the variables in the rule, the central bank can disregard from the exchange rate as long as there is...

Persistent link: https://www.econbiz.de/10009324198

Limited asset market participation: does it really matter for monetary policy?

Ascari, Guido; Colciago, Andrea; Rossi, Lorenza - Suomen Pankki - 2011

determinacy for any empirically plausible degree of LAMP; ii) the implications of LAMP for the design of optimal monetary policy …

Persistent link: https://www.econbiz.de/10009643486

Heterogeneous expectations in monetary DSGE models

Massaro, Domenico - In: Journal of Economic Dynamics and Control 37 (2013) 3, pp. 680-692

rational expectations. We then address determinacy issues related to the use of different interest rate rules and derive policy …

Persistent link: https://www.econbiz.de/10010608462

Macroeconomic equilibrium and welfare under simple monetary and switching fiscal policy rules

Danciulescu, Cristina - In: Economic Modelling 36 (2014) C, pp. 58-68

determinacy and macroeconomic performance of simple monetary policy rules under exogenous versus endogenous tax policies when … control on the determinacy region, hence higher policy flexibility with respect to the fiscal policy conduct; 2. welfare …

Persistent link: https://www.econbiz.de/10010729810

Determinacy in New Keynesian models: a role for money after all?

Minford, A. Patrick L.; Srinivasan, Naveen - Economics Section, Cardiff Business School - 2009

The New-Keynesian Taylor-Rule model of inflation determination with no role for money is incomplete. As Cochrane (2007a) argues, it has no credible mechanism for ruling out bubbles and as a results fails to provide a reason for private agents to pick a unique stable path. We propose a way...

Persistent link: https://www.econbiz.de/10008460571

Indeterminacy, Causality, and the Foundations of Monetary Policy Analysis

McCallum, Bennett T. - In: Swiss Journal of Economics and Statistics (SJES) 146 (2010) I, pp. 107-120

To be useful as a guide to behavior, a model that includes a relationship between x_t and z_t+1 must specify whether x_t is influenced by the expectation at t of z_t+1 or, that z_t+1 is inertially influenced by x_t. We show that, for a broad class of linear RE models, distinct causal...

Persistent link: https://www.econbiz.de/10008465551

Determinacy in New Keynesian Models: a role for money after all?

Minford, Patrick; Srinivasan, Naveen - C.E.P.R. Discussion Papers - 2010

The New-Keynesian Taylor-Rule model of inflation determination with no role for money is incomplete. As Cochrane (2007a, b) argues, it has no credible mechanism for ruling out bubbles (or deal with the non-uniqueness problem that arises when the Taylor principle is violated) and as a result...

Persistent link: https://www.econbiz.de/10008466336