EconStor >
Humboldt-Universität Berlin >
Sonderforschungsbereich 649: Ökonomisches Risiko, Humboldt-Universität Berlin >
SFB 649 Discussion Papers, HU Berlin >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/25297
  
Title:The natural rate hypothesis and real determinacy PDF Logo
Authors:Meyer-Gohde, Alexander
Issue Date:2008
Series/Report no.:SFB 649 discussion paper 2008,054
Abstract:The uniqueness of bounded local equilibria under interest rate rules is analyzed in a model with sticky information `a la Mankiw and Reis (2002). The main results are tighter bounds on monetary policy than in sticky-price models, irrelevance of the degree of output-gap targeting for determinacy, independence of determinacy regions from parameters outside the interest-rate rule, and equivalence between real determinacy in models satisfying the natural rate hypothesis and nominal determinacy in the associated full-information, flex-price equivalent. The analysis follows from boundedness considerations on the nonautonomous recursion that describe the MA(\infty) representation of variables’ reaction to endogenous fluctuations.
Subjects:Nonautonomous difference equations
indeterminacy
Taylor rule
sticky information
sticky prices
JEL:C62
E31
E52
E58
E61
Document Type:Working Paper
Appears in Collections:SFB 649 Discussion Papers, HU Berlin

Files in This Item:
File Description SizeFormat
584572751.PDF550.6 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/25297

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.