Technological change and monetary policy in a sticky-price model

Eiji Tsuzuki*, Tomohiro Inoue

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)


We developed a sticky-price model that introduces the factors of (a) the non-separability of consumption and labor in the utility function and (b) a technological change induced by the investment of profits, to analyze the determinacy of equilibrium. We found that while engaging in inflation targeting increases the probability of determinacy, engaging in share-price targeting decreases the probability of determinacy in a standard sticky-price model; engaging in both inflation targeting and share-price targeting can increase the probability of determinacy in our model.

Original languageEnglish
Pages (from-to)180-194
Number of pages15
JournalResearch in Economics
Issue number3
Publication statusPublished - 2011 Sept


  • Indeterminacy
  • New Keynesian Phillips curve
  • Share-price targeting
  • Taylor principle

ASJC Scopus subject areas

  • Economics and Econometrics


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