The Taylor principle in a medium-scale macroeconomic model

Tommy Sveen () and Lutz Weinke

Journal of Economic Dynamics and Control, 2013, vol. 37, issue 12, 3034-3043

Abstract: We consider a medium-scale New-Keynesian model which combines features that have been shown to explain fairly well postwar U.S. business cycles. Our main result demonstrates that the determinacy properties of forward-looking interest rate rules resemble, at least qualitatively, the corresponding outcomes under current-looking rules. We explain how and why the empiri-cally relevant features of our model generate this novel result.

Keywords: Nominal rigidities; Real rigidities; Monetary policy (search for similar items in EconPapers)
JEL-codes: E22 E31 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (3)

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Working Paper: The Taylor Principle in a medium-scale macroeconomic model (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:dyncon:v:37:y:2013:i:12:p:3034-3043

DOI: 10.1016/j.jedc.2013.09.003

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