Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/95339
Authors: 
Annicchiarico, Barbara
Rossi, Lorenza
Year of Publication: 
2012
Series/Report no.: 
Quaderni di Dipartimento 167
Abstract: 
We study monetary policy in a New Keynesian (NK) model with endogenous growth and knowledge spillovers external to each firm. We find the following results: (i) technology and government spending shocks have different effects on growth; (ii) disinflationary monetary policies entail positive effects on growth; (iii) the optimal long-run inflation rate is zero; (iv) the Ramsey dynamics implies deviation from full inflation targeting in response to technology and government spending shocks; (v) the optimal operational rule is backward looking and responds to inflation and output deviations from their long-run levels.
Subjects: 
Monetary Policy
Endogenous Growth
Disinflation
Ramsey Problem
Optimal Simple Rules
JEL: 
E32
E52
O42
Document Type: 
Working Paper

Files in This Item:
File
Size
313.16 kB





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