Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/56663
Authors: 
Meyer-Gohde, Alexander
Year of Publication: 
2011
Series/Report no.: 
SFB 649 discussion paper 2011-006
Abstract: 
The infinite-dimensional sticky-information Phillips curve is cast as a finite-dimensional timevarying system of difference equations in order to directly assess determinacy in the model with demand given by the forward-looking IS equation and monetary policy by an interest rate rule. An equivalence to the model without lagged expectations holds (albeit tenuously) for the particular specification and a common truncation method produces spurious determinacy.
Subjects: 
determinacy
Taylor rule
sticky Information
time-varying difference equations
JEL: 
C62
E31
E43
E52
Document Type: 
Working Paper

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