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Monetary Policy and Stable Indeterminacy with Inertia Author info | Abstract | Publisher info | Download info | Related research | Statistics George W. Evans () (University of Oregon Economics Department)
Bruce McGough (Oregon State University)
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We examine existence and stability under learning of sunspot equilibria in a New Keynesian model incorporating inertia. Indeterminacy remains prevalent, stable sunspots abound, and inertia in IS and AS relations do not significantly impact the policy region containing stable sunspots.
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Paper provided by University of Oregon Economics Department in its series University of Oregon Economics Department Working Papers with number
2004-4.
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Date of creation: 29 Mar 2004Date of revision:
29 Mar 2004Handle: RePEc:ore:uoecwp:2004-4Contact details of provider: Postal: 1285 University of Oregon, 435 PLC, Eugene, OR 97403-1285 Phone: (541) 346-4661 Fax: (541) 346-1243 Email: Web page: http://economics.uoregon.edu/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Bill Harbaugh).
Keywords: Monetary Policy ; sunspots ; learning ; stability ; Other versions of this item:
Find related papers by JEL classification: E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
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References listed on IDEAS Please 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.: Evans, George W. & Honkapohja, Seppo, 2003.
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Computing in Economics and Finance 2000
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American Economic Review ,
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[Downloadable!] Evans, George W. & McGough, Bruce, 2005.
"Monetary policy, indeterminacy and learning ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 29(11), pages 1809-1840, November.
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Other versions: George W. Evans & Bruce McGough, 2002.
"Indeterminacy and the Stability Puzzle in Non-Convex Economies ,"
University of Oregon Economics Department Working Papers
2002-14, University of Oregon Economics Department, revised 27 Aug 2005.
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"Monetary Policy Rules And Macroeconomic Stability: Evidence And Some Theory ,"
The Quarterly Journal of Economics ,
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Other versions:
Clarida, Richard & Galí, Jordi & Gertler, Mark, 1998.
"Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory ,"
CEPR Discussion Papers
1908, C.E.P.R. Discussion Papers.
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NBER Working Papers
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"Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory ,"
Economics Working Papers
350, Department of Economics and Business, Universitat Pompeu Fabra, revised May 1999.
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"Implementing Optimal Policy Through Inflation-Forecast Targeting ,"
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"Determinacy, learnability, and monetary policy inertia ,"
Working Papers
2000-030, Federal Reserve Bank of St. Louis.
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Other versions:
James Bullard & Kaushik Mitra, .
"Determinacy, Learnability, and Monetary Policy Inertia ,"
Discussion Papers
00/43, Department of Economics, University of York.
[Downloadable!] Kaushik Mitra & James Bullard, 2004.
"Determinacy, Learnability, and Monetary Policy Inertia ,"
Royal Holloway, University of London: Discussion Papers in Economics
04/14, Department of Economics, Royal Holloway University of London, revised Jul 2004.
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"Determinacy, Learnability, and Monetary Policy Inertia ,"
Journal of Money, Credit and Banking ,
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[Downloadable!] (restricted) George W. Evans & Bruce McGough, 2002.
"Stable Sunspot Solutions in Models with Predetermined Variables ,"
University of Oregon Economics Department Working Papers
2002-16, University of Oregon Economics Department, revised 29 May 2003.
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Other versions: Evans George W. & Honkapohja Seppo, 1994.
"On the Local Stability of Sunspot Equilibria under Adaptive Learning Rules ,"
Journal of Economic Theory ,
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"Monetary policy rules? ,"
Review ,
Federal Reserve Bank of St. Louis, issue Mar, pages 3-12.
[Downloadable!]
Other versions:
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references Cited by : (explanations , Please 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.)
Eran Guse, 2007.
"Learning in a Misspecified Multivariate Self-Referential Linear Stochastic Model ,"
Money Macro and Finance (MMF) Research Group Conference 2006
71, Money Macro and Finance Research Group.
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Other versions:
Guse, E., 2005.
"Learning in a Misspecified Multivariate Self-referential Linear Stochastic Model ,"
Cambridge Working Papers in Economics
0548, Faculty of Economics, University of Cambridge.
[Downloadable!] Guse, Eran A., 2008.
"Learning in a misspecified multivariate self-referential linear stochastic model ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 32(5), pages 1517-1542, May.
[Downloadable!] (restricted) Marco Ratto, 2008.
"Analysing DSGE Models with Global Sensitivity Analysis ,"
Computational Economics ,
Springer, vol. 31(2), pages 115-139, March.
[Downloadable!] (restricted)
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