Monetary Policy and Stable Indeterminacy with Inertia

George William Evans () and Bruce McGough ()

University of Oregon Economics Department Working Papers from University of Oregon Economics Department

Abstract: 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.

Keywords: Monetary Policy; sunspots; learning; stability (search for similar items in EconPapers)
JEL-codes: E52 E32 D83 D84 (search for similar items in EconPapers)
Date: 2004-03-29
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Related works:
Journal Article: Monetary policy and stable indeterminacy with inertia (2005)
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