Determinacy, stock market dynamics and monetary policy inertia

C-Tier
Journal: Economics Letters
Year: 2011
Volume: 112
Issue: 1
Pages: 7-10

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study equilibrium determinacy in a New-Keynesian model where the Central Bank responds to asset prices growth. Unlike Taylor-type rules that react to asset prices, the proposed alternative does not harm dynamic stability and in certain cases promotes determinacy by inducing interest-rate inertia.

Technical Details

RePEc Handle
repec:eee:ecolet:v:112:y:2011:i:1:p:7-10
Journal Field
General
Author Count
2
Added to Database
2026-01-29