Real wage rigidity and the Taylor principle
Abstract
This paper investigates conditions for equilibrium determinacy in the basic new Keynesian model with real wage rigidity. The determinacy region is increased under forward-looking rules and the Taylor principle continues to ensure equilibrium uniqueness under current-looking rules.Download Info
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Bibliographic Info
Article provided by Elsevier in its journal Economics Letters.
Volume (Year): 104 (2009)
Issue (Month): 1 (July)
Pages: 46-48
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Web page: http://www.elsevier.com/locate/ecolet
Related research
Keywords: Real wage rigidity Determinacy Inflation targeting;Other versions of this item:
- Araújo, Eurilton, 2008. "Real Wage Rigidity and the Taylor Principle," Ibmec Working Papers wpe_112, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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"An inventory of simple monetary policy rules in a New Keynesian macroeconomic model,"
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CEPR Discussion Papers
5375, C.E.P.R. Discussion Papers.
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- Olivier Blanchard & Jordi Galí, 2005. "Real wage rigidities and the new Keynesian model," Economics Working Papers 912, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2005.
- Olivier Blanchard & Jordi Galí, 2005. "Real Wage Rigidities and the New Keynesian Model," Working Papers 243, Barcelona Graduate School of Economics.
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- Kurozumi, Takushi, 2006. "Determinacy and expectational stability of equilibrium in a monetary sticky-price model with Taylor rule," Journal of Monetary Economics, Elsevier, vol. 53(4), pages 827-846, May.
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