Interest-Rate Rules in a New Keynesian Framework with Investment

The last decades have witnessed major progress in both monetary policy theory and practice, with broad academic consensus on the desirability of monetary policy rules and ongoing research on their exact specification. Typically, the analysis is carried out in a New Keynesian framework with nominal r...

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Auteur principal: Pavlova, Elena
Format: Online
Langue:anglais
Publié: Peter Lang International Academic Publishers 2021
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Accès en ligne:1002682
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author Pavlova, Elena
author_browse Pavlova, Elena
author_facet Pavlova, Elena
author_sort Pavlova, Elena
collection Directory of Open Access Books
description The last decades have witnessed major progress in both monetary policy theory and practice, with broad academic consensus on the desirability of monetary policy rules and ongoing research on their exact specification. Typically, the analysis is carried out in a New Keynesian framework with nominal rigidities and constant capital stock. The latter represents a constraint that this study seeks to overcome by introducing a model with investment and capital adjustment costs. The work assesses different interest-rate rule specifications with respect to the target variables included, based on two criteria: determinacy of rational-expectations equilibrium and convergence to steady state after a shock. The study concludes that rules with both an inflation and an output gap target ensure a unique rational-expectations equilibrium and a less distressful adjustment of the economy after the occurrence of shocks.
format Online
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institution Directory of Open Access Books
language eng
publishDate 2021
publishDateRange 2021
publishDateSort 2021
publisher Peter Lang International Academic Publishers
publisherStr Peter Lang International Academic Publishers
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spelling doab-20.500.12854ir-381132025-02-04T05:08:34Z Interest-Rate Rules in a New Keynesian Framework with Investment Pavlova, Elena Framework Inflation-targeting Interest Investment Keynesian Monetary policy Pavlova Rate rational-expectations equilibrium Rules Taylor principle with thema EDItEUR::J Society and Social Sciences::JP Politics and government thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics The last decades have witnessed major progress in both monetary policy theory and practice, with broad academic consensus on the desirability of monetary policy rules and ongoing research on their exact specification. Typically, the analysis is carried out in a New Keynesian framework with nominal rigidities and constant capital stock. The latter represents a constraint that this study seeks to overcome by introducing a model with investment and capital adjustment costs. The work assesses different interest-rate rule specifications with respect to the target variables included, based on two criteria: determinacy of rational-expectations equilibrium and convergence to steady state after a shock. The study concludes that rules with both an inflation and an output gap target ensure a unique rational-expectations equilibrium and a less distressful adjustment of the economy after the occurrence of shocks. 2021-02-10T12:58:18Z 2019-01-10 23:55 2018-12-01 23:55:55 2019-01-10 03:00:32 2020-04-01T11:49:21Z 2012-06-26 book 1002682 OCN: 817907315 http://library.oapen.org/handle/20.500.12657/27330 9783653014440 https://directory.doabooks.org/handle/20.500.12854/38113 eng Schriften zur Wirtschaftstheorie und Wirtschaftspolitik open access image/jpeg image/jpeg image/jpeg image/jpeg image/jpeg n/a n/a n/a n/a n/a https://library.oapen.org/bitstream/20.500.12657/27330/1/1002682.pdf https://library.oapen.org/bitstream/20.500.12657/27330/1/1002682.pdf https://library.oapen.org/bitstream/20.500.12657/27330/1/1002682.pdf https://library.oapen.org/bitstream/20.500.12657/27330/1/1002682.pdf https://library.oapen.org/bitstream/20.500.12657/27330/1/1002682.pdf Peter Lang International Academic Publishers 10.3726/978-3-653-01444-0 10.3726/978-3-653-01444-0 44a712f0-ee17-4c08-a667-46effed595e7 9783653014440 162 Bern open access
spellingShingle Framework
Inflation-targeting
Interest
Investment
Keynesian
Monetary policy
Pavlova
Rate
rational-expectations equilibrium
Rules
Taylor principle
with
thema EDItEUR::J Society and Social Sciences::JP Politics and government
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics
Pavlova, Elena
Interest-Rate Rules in a New Keynesian Framework with Investment
title Interest-Rate Rules in a New Keynesian Framework with Investment
title_full Interest-Rate Rules in a New Keynesian Framework with Investment
title_fullStr Interest-Rate Rules in a New Keynesian Framework with Investment
title_full_unstemmed Interest-Rate Rules in a New Keynesian Framework with Investment
title_short Interest-Rate Rules in a New Keynesian Framework with Investment
title_sort interest rate rules in a new keynesian framework with investment
topic Framework
Inflation-targeting
Interest
Investment
Keynesian
Monetary policy
Pavlova
Rate
rational-expectations equilibrium
Rules
Taylor principle
with
thema EDItEUR::J Society and Social Sciences::JP Politics and government
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics
topic_facet Framework
Inflation-targeting
Interest
Investment
Keynesian
Monetary policy
Pavlova
Rate
rational-expectations equilibrium
Rules
Taylor principle
with
thema EDItEUR::J Society and Social Sciences::JP Politics and government
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics
url 1002682
work_keys_str_mv AT pavlovaelena interestraterulesinanewkeynesianframeworkwithinvestment