| Main Title |
Learning, monetary policy and asset prices / |
| Author |
Airaudo, Marco,
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| Other Authors |
|
| Publisher |
International Monetary Fund, |
| Year Published |
2015 |
| OCLC Number |
1374070542 |
| Subjects |
Monetary policy--Econometric models ;
Stocks--Prices--Econometric models ;
Interest rates--Econometric models ;
Consumption (Economics)--Econometric models ;
Cost and standard of living--Econometric models ;
Computable general equilibrium models
|
| Internet Access |
|
| Holdings |
| Library |
Call Number |
Additional Info |
Location |
Last
Modified |
Checkout
Status |
| ELBM |
HG3881.5.I58L43 2015 |
|
AWBERC Library/Cincinnati,OH |
04/04/2023 |
|
| Collation |
33 pages : figures ; 28 cm |
| Notes |
"January 2015." "Research Department." Includes bibliographical references (pages 31-33). Print copy of PDF. |
| Contents Notes |
We explore the stability properties of interest rate rules granting an explicit response to stock prices in a New-Keynesian DSGE model populated by Blanchard-Yaari non-Ricardian households. The constant turnover between long-time stock holders and asset-poor newcomers generates a financial wealth channel where the wedge between current and expected future aggregate consumption is affected by the market value of financial wealth, making stock prices non-redundant for the business cycle. We find that if the financial wealth channel is sufficiently strong, responding to stock prices enlarges the policy space for which the rational expectations equilibrium is both determinate and learnable (in the E-stability sense of Evans and Honkapohja, 2001). In particular, the Taylor principle ceases to be necessary and also mildly passive policy responses to inflation lead to determinacy and E-stability. Our results appear to be more prominent in economies characterized by a lower elasticity of substitution across differentiated products and/or more rigid labor markets.--Abstract. |
| Place Published |
Washington, D.C. |
| Corporate Au Added Ent |
International Monetary Fund. Research Department. |
| Title Ser Add Ent |
IMF working paper ; WP/15/16. |
| PUB Date Free Form |
2015 |
| Series Title Untraced |
IMF working paper, WP/15/16 |
| BIB Level |
m |
| Medium |
unmediated |
| Content |
text |
| Carrier |
volume |
| Cataloging Source |
RDA |
| OCLC Time Stamp |
20230327213019 |
| Language |
eng |
| Origin |
OCLC |
| Type |
CAT |
| OCLC Rec Leader |
03554nam 2200553 i 45010 |
