An Endogenous Taylor Condition in an Endogenous Growth Monetary Policy Model
The paper derives a Taylor condition as part of the agent's equilibrium behavior in an endogenous growth monetary economy. It shows the assumptions necessary to make it almost identical to the original Taylor rule, and that it can interchangably take a money supply growth rate form. From the money supply form, simple policy experiments are conducted. A full central bank policy model is derived that includes the Taylor condition along with equations comparable to the standard aggregate-demand/aggregate-supply model.
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- Szilárd Benk & Max Gillman & Michal Kejak, 2008.
"Money Velocity in an Endogenous Growth Business Cycle with Credit Shocks,"
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- Goodfriend, Marvin & McCallum, Bennett T., 2007.
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- Marvin Goodfriend & Bennett T. McCallum, 2007. "Banking and interest rates in monetary policy analysis: a quantitative exploration," Proceedings, Federal Reserve Bank of San Francisco.
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