Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/276260 
Year of Publication: 
2023
Series/Report no.: 
IMFS Working Paper Series No. 189
Publisher: 
Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS), Frankfurt a. M.
Abstract: 
We present determinacy bounds on monetary policy in the sticky information model. We find that these bounds are more conservative here when the long run Phillips curve is vertical than in the standard Calvo sticky price New Keynesian model. Specifically, the Taylor principle is now necessary directly - no amount of output targeting can substitute for the monetary authority's concern for inflation. These determinacy bounds are obtained by appealing to frequency domain techniques that themselves provide novel interpretations of the Phillips curve.
Subjects: 
Determinacy
Taylor Rule
Sticky Information
Frequency Domain
z-Transform
JEL: 
C62
E31
E43
E52
Document Type: 
Working Paper

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