ECONOMIES OF SCALE IN BANKING, INDETERMINACY, AND MONETARY POLICY
نویسندگان
چکیده
منابع مشابه
Monetary Policy, Indeterminacy and Learning∗
Forward-looking monetary models with Taylor-type interest rate rules are known to generate indeterminacies, with a potential dependence on extraneous “sunspots,” for some structural and policy parameters. We investigate the stability of these solutions under adaptive learning, focusing on “common factor” or “resonant frequency” representations in which the observed sunspot has a suitable time-s...
متن کاملGovernment Policy in Monetary Economies
I study how the general and specific details of a micro founded monetary framework affect the determination of policy when the government has limited commitment. The conduct of policy depends on the interaction between the incentive to smooth distortions intertemporally and a time-consistency problem. In equilibrium, fiscal and monetary policies are distortionary, but long-run policy is not aff...
متن کاملMonetary Policy and Stable Indeterminacy with Inertia∗
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 sta-
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In an open economy, outside money in positive supply does not eliminate the real indeterminacy which arises under uncertainty and incomplete asset markets. If money supply is subject to shocks or is not perfectly credible in all countries, the level of a fixed exchange rate matters. Analogous results obtain in cash in advance models.
متن کاملMonetary Policy and Unemployment in Open Economies
After an expansionary monetary policy shock employment increases and unemployment falls. In standard New Keynesian models the fall in aggregate unemployment does not a¤ect employed workers at all. However, Lüchinger, Meier and Stutzer (2010) found that the risk of unemployment negatively a¤ects utility of employed workers: An increases in aggregate unemployment decreases workerssubjective well...
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ژورنال
عنوان ژورنال: Economic Inquiry
سال: 2011
ISSN: 0095-2583
DOI: 10.1111/j.1465-7295.2010.00307.x