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The Taylor principle fights back, Part II

Buffie, Edward F. - In: Journal of Economic Dynamics and Control 46 (2014) C, pp. 30-49

The existing literature holds that the Taylor principle often leads to indeterminacy in New Keynesian models that allow … clears quickly but not instantaneously, determinacy is the norm. The threat of indeterminacy is limited to a tiny, irrelevant …

Persistent link: https://www.econbiz.de/10010906783

Inflation, Growth and Exchange Rate Regimes in Small Open Economies

Hernandez-Verme, Paula - Volkswirtschaftliche Fakultät, … - 2002

inflation thresholds: increasing inflation beyond the threshold level will reduce domestic output. Instability, indeterminacy of … high rates of domestic inflation- increases the scope for indeterminacy and economic fluctuations. …

Persistent link: https://www.econbiz.de/10005037728

How to avoid the consequences of anticipated monetary policies

Gersbach, Hans - In: Economic Theory 14 (1999) 3, pp. 729-740

This paper analyzes how monetary policy in an overlapping generations model can be designed to avoid inflationary consequences of anticipated changes of monetary policies. Avoiding these inflationary consequences will require a once and for all increase (decrease) in monetary growth immediately...

Persistent link: https://www.econbiz.de/10005596786

The Taylor principle fights back, Part I

Buffie, Edward F. - In: Journal of Economic Dynamics and Control 37 (2013) 12, pp. 2771-2795

interest rates increase aggregate demand, the Taylor principle leads to indeterminacy, and passive policy ensures a unique …

Persistent link: https://www.econbiz.de/10010719561

VAR analysis and the Great Moderation

Benati, Luca; Surico, Paolo - 2008

Most analyses of the U.S. Great Moderation have been based on structural VAR methods, and have consistently pointed towards good luck as the main explanation for the greater macroeconomic stability of recent years. Based on an estimated New-Keynesian model in which the only source of change is...

Persistent link: https://www.econbiz.de/10011604912