An Endogenous Taylor Condition in an Endogenous Growth Monetary Policy Model

Vo Phuong Mai Le, Max Gillman and A. Patrick Minford

No E2007/29, Cardiff Economics Working Papers from Cardiff University, Cardiff Business School, Economics Section

Abstract: 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.

Keywords: Taylor Rule; endogenous growth; money supply; policy model (search for similar items in EconPapers)
JEL-codes: E51 E52 O0 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2007-11
New Economics Papers: this item is included in nep-cba, nep-dge, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:cdf:wpaper:2007/29

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