Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/213930
Authors: 
Chatelain, Jean-Bernard
Ralf, Kirsten
Year of Publication: 
2020
Citation: 
[Journal:] Macroeconomic Dynamics [ISSN:] 1469-8056 [Issue:] Forthcoming
Abstract: 
This paper compares different implementations of monetary policy in a new-Keynesian setting. We can show that a shift from Ramsey optimal policy under short-term commitment (based on a negative feedback mechanism) to a Taylor rule (based on a positive feedback mechanism) corresponds to a Hopf bifurcation with opposite policy advice and a change of the dynamic properties. This bifurcation occurs because of the ad hoc assumption that interest rate is a forward-looking variable when policy targets (inflation and output gap) are forward-looking variables in the new-Keynesian theory.
Subjects: 
Taylor rule
Bifurcation
Ramsey optimal policy
New-Keynesian Model
JEL: 
E47
E52
E58
E43
C61
C62
Published Version’s DOI: 
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)

Files in This Item:
File
Size





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