An Analytical Solution for the Interest Rate Reaction Function in a New-Keynesian Economy Using the Undetermined Coefficients Method

In this research note I propose the use of the undetermined coefficients method as an alternative approach to solve the Central Bank optimization problem in a new-keynesian economy. The advantage of using this method is that it provides a theory as to how rational expectations are constructed, and how shocks in the economy are propagated, in order to find an analytical solution for the interest rate reaction function in an economy with a forward-looking behavior

MoreLess

Year of publication:	2009
Authors:	Arend, Mario
Publisher:	[2009]: [S.l.] : SSRN
Subject:	Theorie \| Theory \| Zins \| Interest rate \| Geldpolitik \| Monetary policy \| Taylor-Regel \| Taylor rule

Extent:	1 Online-Ressource (8 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 2, 2009 erstellt
Other identifiers:	10.2139/ssrn.1498772 [DOI]
Classification:	C61 - Optimization Techniques; Programming Models; Dynamic Analysis ; E43 - Determination of Interest Rates; Term Structure Interest Rates ; E52 - Monetary Policy (Targets, Instruments, and Effects)
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013155121