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Generalizing the Taylor Principle: New Comment

Author

Listed:
  • Jean Barthélemy

    (Banque de France)

  • Magali Marx

    (Département d'économie)

Abstract

Dans ce papier, nous énonçons les conditions de détermination, c'est-à-dire les conditions assurant l'existence et l'unicité d'une solution bornée, dans les modèles linéaires, à anticipations rationnelles, tournées vers le futur et incorporant des changements de régime. Nous mettons ainsi un terme au débat entre Davig et Leeper (2007) et Farmer et al. (2010). Les conditions de détermination dérivées par les premiers sont uniquement valides dans le sous-espace des solutions bornées ne dépendant que d'un nombre ni de régimes passés, que nous appelons markoviennes. Dans l'espace des solutions bornées, les nouvelles conditions de détermination que nous dérivons sont plus restrictives. Néanmoins, lorsqu'elle est unique, la solution coïncide avec la solution markovienne de Davig et Leeper (2007). Finalement, nous illustrons nos résultats dans un modèle néo-keynesien standard étudié dans les deux articles sus-cités.

Suggested Citation

  • Jean Barthélemy & Magali Marx, 2012. "Generalizing the Taylor Principle: New Comment," Sciences Po publications 403, Sciences Po.
  • Handle: RePEc:spo:wpmain:info:hdl:2441/3bvs8clr5k9dqqcbq7j5ul2o65
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    References listed on IDEAS

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    Cited by:

    1. Jean Barthélemy & Magali Marx, 2011. "State-Dependent Probability Distributions in Non Linear Rational Expectations Models," Sciences Po publications 347, Sciences Po.
    2. Zakipour-Saber, Shayan, 2019. "State-dependent Monetary Policy Regimes," Research Technical Papers 4/RT/19, Central Bank of Ireland.
    3. Richter Alexander W. & Throckmorton Nathaniel A., 2015. "The zero lower bound: frequency, duration, and numerical convergence," The B.E. Journal of Macroeconomics, De Gruyter, vol. 15(1), pages 1-26, January.
    4. Barthélemy, Jean & Marx, Magali, 2017. "Solving endogenous regime switching models," Journal of Economic Dynamics and Control, Elsevier, vol. 77(C), pages 1-25.
    5. Shayan Zakipour-Saber, 2019. "State-dependent Monetary Policy Regimes," Working Papers 882, Queen Mary University of London, School of Economics and Finance.
    6. Shayan Zakipour-Saber, 2019. "Monetary policy regimes and inflation persistence in the United Kingdom," Working Papers 895, Queen Mary University of London, School of Economics and Finance.

    More about this item

    Keywords

    Markov switching; DGSE; Indeterminancy; Changements de régime; DSGE; Indétermination;

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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