Monetary Policy and Stable Indeterminacy with Inertia
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Date
2004-03-29
Authors
Evans, George W., 1949-
McGough, Bruce
Journal Title
Journal ISSN
Volume Title
Publisher
University of Oregon, Dept. of Economics
Abstract
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 stable sunspots.
Description
9 p.
Keywords
Monetary policy, Sunspots, Learning, Stability