Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Optimal monetary policy in a New Keynesian model with endogenous growth. / Annicchiarico, B.; Rossi, L.
In: Journal of Macroeconomics, Vol. 38, No. Part B, 31.12.2013, p. 274-285.Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Optimal monetary policy in a New Keynesian model with endogenous growth
AU - Annicchiarico, B.
AU - Rossi, L.
PY - 2013/12/31
Y1 - 2013/12/31
N2 - We study optimal monetary policy in a New Keynesian (NK) model with endogenous growth and knowledge spillovers external to each firm. We find that, in contrast with the standard NK model, the Ramsey dynamics implies deviation from full inflation targeting in response to technology and government spending shocks, while the optimal operational rule is backward looking and responds to inflation and output deviations from their long-run levels.
AB - We study optimal monetary policy in a New Keynesian (NK) model with endogenous growth and knowledge spillovers external to each firm. We find that, in contrast with the standard NK model, the Ramsey dynamics implies deviation from full inflation targeting in response to technology and government spending shocks, while the optimal operational rule is backward looking and responds to inflation and output deviations from their long-run levels.
KW - Endogenous growth
KW - Monetary policy
KW - Optimal simple rules
KW - Ramsey problem
U2 - 10.1016/j.jmacro.2013.10.001
DO - 10.1016/j.jmacro.2013.10.001
M3 - Journal article
VL - 38
SP - 274
EP - 285
JO - Journal of Macroeconomics
JF - Journal of Macroeconomics
SN - 0164-0704
IS - Part B
ER -