A new Keynesian model with delay: Monetary policy lag and determinacy of equilibrium

Eiji Tsuzuki

Economic Analysis and Policy, 2014, vol. 44, issue 3, 279-291

Abstract: We investigate the effects of a monetary policy lag on equilibrium determinacy by using a New Keynesian (NK) continuous-time framework. If the lag is not very large, the result obtained will not be different from the standard one: an active monetary policy attains local equilibrium determinacy, which is a policy norm known as the Taylor principle. However, if the lag is sufficiently large, then no equilibrium will exist.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0313592614000460
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:44:y:2014:i:3:p:279-291

Access Statistics for this article

Economic Analysis and Policy is currently edited by Clevo Wilson

More articles in Economic Analysis and Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().