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Determinacy in new Keynesian models: A role for money after all?

Minford, Patrick; Srinivasan, Naveen - 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 result fails to provide a reason for private agents to pick a unique stable path. We propose a way...

Persistent link: https://www.econbiz.de/10010288779

Currency substitution, risk premia and the Taylor principle

Airaudo, Marco - In: Journal of Economic Dynamics and Control 48 (2014) C, pp. 202-217

This paper studies the equilibrium determinacy properties of a simple interest rate rule in a small open economy …

Persistent link: https://www.econbiz.de/10011077510

Price indexation, habit formation, and the Generalized Taylor Principle

Bhattarai, Saroj; Lee, Jae Won; Park, Woong Yong - In: Journal of Economic Dynamics and Control 48 (2014) C, pp. 218-225

condition for determinacy in a sticky price model with interest rate smoothing in monetary policy, partial dynamic price …

Persistent link: https://www.econbiz.de/10011077520

Price Indexation, Habit Formation, and the Generalized Taylor Principle

Bhattarai, Saroj; Lee, Jae Won; Park, Woong Yong - Crawford School of Public Policy, Australian National … - 2013

determinacy in a sticky price model with positive steady-state inflation, interest rate smoothing in monetary policy, partial …

Persistent link: https://www.econbiz.de/10010904268

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

Optimal Monetary Policy under Learning in a New Keynesian Model with Cost Channel and Inflation Inertia

Bask, Mikael; Proaño, Christian R - Nationalekonomiska Institutionen, Uppsala Universitet - 2012

We show that a so-called expectations-based optimal monetary policy rule has desirable properties in a standard New Keynesian model augmented with a cost channel and inflation rate expectations that are partly backward-looking. In particular, optimal monetary policy under commitment is...

Persistent link: https://www.econbiz.de/10010699695

Determinacy and Indeterminacy in Monetary Policy Rules with Money

Keating, John; Smith, Andrew Lee - Department of Economics, University of Kansas - 2013

parametric, we show this determinacy result extends to the non-parametric Divisia monetary aggregate growth rule. Interestingly … stemming from this aggregate’s inaccuracy in tracking the true monetary aggregate. Determinacy regions of interest rate rules …

Persistent link: https://www.econbiz.de/10010704438

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

Federal Reserve Policy viewed through a Money Supply Lens

Chowdhury, Ibrahim; Schabert, Andreas - Schweizerische Nationalbank (SNB) - 2007

roperties are shown to be consistent with a welfare maximizing policy, and to ensure equilibrium determinacy. Viewed through the …

Persistent link: https://www.econbiz.de/10008925016

Determinacy and Expectational Stability of Equilibrium in a Monetary Sticky-Price Model with Taylor Rule

Kurozumi, Takushi - Bank of Japan - 2006

Recent studies show that the Taylor rule possesses desirable properties in terms of generating determinacy and E … ensure both determinacy and E-stability. …

Persistent link: https://www.econbiz.de/10010894550