Monetary Policy and Stable Indeterminacy with Inertia

George Evans and Bruce McGough (bmcgough@uoregon.edu)

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: D83 D84 E32 E52 (search for similar items in EconPapers)
Pages: 9
Date: 2004-03-29, Revised 2004-03-29
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http://economics.uoregon.edu/papers/UO-2004-4_Evans_Inertia.pdf (application/pdf)

Related works:
Journal Article: Monetary policy and stable indeterminacy with inertia (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:ore:uoecwp:2004-4

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