منابع مشابه
Progressive Taxation of Labor Income, Taylor Principle and Monetary Policy
Progressive labor income taxation in an otherwise standard NK model: (i) introduces a trade-o¤ between output and ination stabilization; (ii) enlarges the determinacy region in the parameter space, substantially altering the so-called Taylor principle; (iii) has non-linear dynamic e¤ects and changes the responses of the economy to a technology and to a government spending shock; (iv) sensibly ...
متن کاملCapital accumulation, sectoral heterogeneity and the Taylor principle
In the presence of capital accumulation the Taylor principle may not be sufficient for determinacy under reasonable parameter values. In this paper I consider a two-sector extension of the models used in the existing literature. I show that what matters for whether the Taylor principle is sufficient is the price stickiness of investment goods. Price stickiness of consumer goods on the other han...
متن کاملFirm-specific capital, nominal rigidities, and the Taylor principle
In the presence of firm-specific capital the Taylor principle can generate multiple equilibria. Sveen and Weinke (2005b) obtain that result in the context of a Calvo-style sticky price model. One potential criticism is that the price stickiness which is needed for our theoretical result to be relevant from a practical point of view is somewhat to the high part of available empirical estimates. ...
متن کاملNew perspectives on capital, sticky prices, and the Taylor principle
Our main result is that dynamic new-Keynesian (DNK) models with firm-specific capital feature a substantial amount of endogenous price stickiness. We use this insight to assess the desirability of alternative interest rate rules, and make the case for combining active monetary policy with interest rate smoothing and/or some responsiveness of the nominal interest rate to real economic activity. ...
متن کاملEmpirical Evidence on the Generalized Taylor Principle # 334
During fi nancial crises central banks usually decrease interest rates in order to reduce fi nancial uncertainty. This behavior increases infl ation risk. The trade-off between infl ation and uncertainty stabilization can be modeled by the generalized Taylor rule, which describes infl ation sensitivity as a function of fi nancial uncertainty instead of a constant parameter. Based on the GMM-est...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Monetary Economics
سال: 2007
ISSN: 0304-3932
DOI: 10.1016/j.jmoneco.2007.06.026