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Il nuovo modello di sintesi neoclassica e il meccanismo di trasmissione della politica monetaria

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  • Giorgio PIZZUTTO

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Abstract

The new neoclassical synthesis combines ideas of Keynesian and classical economics. It involves the application of intertemporal optimization and rational expectations. These are applied to the analysis of pricing and output decisions in a Keynesian context as well to the consumption, investment and labor supply decisions proper of real business cycle models. Moreover the model supposes an endogenous monetary rule linking nominal rate of interest to inflation and output targets. In this paper we survey this new macroeconomic model and evaluate how money affect output and employment once that the instrument of monetary policy is the interest rate instead of quantity of money. Then we explain why the new synthesis cannot account for the persistent effect of monetary policy and the business cycle asymmetry

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Paper provided by Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano in its series Departmental Working Papers with number 2004-10.

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Date of creation: 01 Jan 2004
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Handle: RePEc:mil:wpdepa:2004-10

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Keywords: new neoclassical synthesis; endogenous monetary policy; output persistence;

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  1. Julio J. Rotemberg & Michael Woodford, 1998. "An Optimization-Based Econometric Framework for the Evaluation of Monetary Policy: Expanded Version," NBER Technical Working Papers 0233, National Bureau of Economic Research, Inc.
  2. Bennett T. McCallum & Edward Nelson, . "An Optimizing IS-LM Specification for Monetary Policy and Business Cycle Analysis," GSIA Working Papers 1997-71, Carnegie Mellon University, Tepper School of Business.
  3. Julio Rotemberg & Michael Woodford, 1997. "An Optimization-Based Econometric Framework for the Evaluation of Monetary Policy," NBER Chapters, in: NBER Macroeconomics Annual 1997, Volume 12, pages 297-361 National Bureau of Economic Research, Inc.
  4. Michael Dotsey & Robert G. King, 2001. "Pricing, Production and Persistence," NBER Working Papers 8407, National Bureau of Economic Research, Inc.
  5. Fuerst, Timothy S., 1992. "Liquidity, loanable funds, and real activity," Journal of Monetary Economics, Elsevier, vol. 29(1), pages 3-24, February.
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