Global and local determinacy in a one-step forward looking New Keynesian model

C-Tier
Journal: Economic Modeling
Year: 2011
Volume: 28
Issue: 3
Pages: 1354-1362

Authors (2)

Cornaro, Alessandra (not in RePEc) Agliari, Anna (Università Cattolica del Sacro...)

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

In this paper we consider a New Keynesian model for optimal monetary policy in a staggered fashion. We provide the relations of a non linear model of general economic equilibrium, implementing a suitable Taylor-type interest rate rule. We characterize the conditions that guarantee local determinacy and explore conditions under which local bifurcations of the target equilibrium may occur. Afterwards, we argue how local determinacy might be associated with global indeterminacy, providing some numerical examples.

Technical Details

RePEc Handle
repec:eee:ecmode:v:28:y:2011:i:3:p:1354-1362
Journal Field
General
Author Count
2
Added to Database
2026-01-24