Technological change and monetary policy in a sticky-price model

Eiji Tsuzuki; Tomohiro Inoue

doi:10.1016/j.rie.2010.08.001

Technological change and monetary policy in a sticky-price model

Eiji Tsuzuki^*, Tomohiro Inoue

^*Corresponding author for this work

Waseda University

Research output: Contribution to journal › Article › peer-review

2 Citations (Scopus)

Abstract

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 language	English
Pages (from-to)	180-194
Number of pages	15
Journal	Research in Economics
Volume	65
Issue number	3
DOIs	https://doi.org/10.1016/j.rie.2010.08.001
Publication status	Published - 2011 Sept

Keywords

Indeterminacy
New Keynesian Phillips curve
Share-price targeting
Taylor principle

ASJC Scopus subject areas

Economics and Econometrics

Access to Document

10.1016/j.rie.2010.08.001

Cite this

@article{d8ddf5a8dfea40c9984f0e51a73c9f38,

title = "Technological change and monetary policy in a sticky-price model",

abstract = "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.",

keywords = "Indeterminacy, New Keynesian Phillips curve, Share-price targeting, Taylor principle",

author = "Eiji Tsuzuki and Tomohiro Inoue",

year = "2011",

month = sep,

doi = "10.1016/j.rie.2010.08.001",

language = "English",

volume = "65",

pages = "180--194",

journal = "Research in Economics",

issn = "1090-9443",

publisher = "Academic Press Inc.",

number = "3",

}

TY - JOUR

T1 - Technological change and monetary policy in a sticky-price model

AU - Tsuzuki, Eiji

AU - Inoue, Tomohiro

PY - 2011/9

Y1 - 2011/9

N2 - 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.

AB - 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.

KW - Indeterminacy

KW - New Keynesian Phillips curve

KW - Share-price targeting

KW - Taylor principle

UR - http://www.scopus.com/inward/record.url?scp=79957959109&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=79957959109&partnerID=8YFLogxK

U2 - 10.1016/j.rie.2010.08.001

DO - 10.1016/j.rie.2010.08.001

M3 - Article

AN - SCOPUS:79957959109

SN - 1090-9443

VL - 65

SP - 180

EP - 194

JO - Research in Economics

JF - Research in Economics

IS - 3

ER -

Technological change and monetary policy in a sticky-price model

Abstract

Keywords

ASJC Scopus subject areas

Access to Document

Other files and links

Fingerprint

Cite this