Determinacy, stock market dynamics and monetary policy inertia
Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
We study equilibrium determinacy in a New-Keynesian model where the Central Bank responds to asset prices growth. Unlike Taylor-type rules that react to asset prices, the proposed alternative does not harm dynamic stability and in certain cases promotes determinacy by inducing interest-rate inertia.
Originalsprog | Engelsk |
---|---|
Tidsskrift | Economics Letters |
Vol/bind | 112 |
Udgave nummer | 1 |
Sider (fra-til) | 7-10 |
Antal sider | 4 |
ISSN | 0165-1765 |
DOI | |
Status | Udgivet - 2011 |
Bibliografisk note
JEL classification: C62, E52
- Asset prices, Determinacy, Monetary policy inertia
Forskningsområder
ID: 33780789