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Determinacy, stock market dynamics and monetary policy inertia

Pfajfar,D.
; 
Santoro,E.
Abstract
We study equilibrium determinacy in a New-Keynesian model where the Central Bank responds to asset prices growth. Unlike Taylor-type rules that react to asset prices, the proposed alternative does not harm dynamic stability and in certain cases promotes determinacy by inducing interest-rate inertia.
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Date
2011
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Tilburg University Research Output Collection
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SDG 17 - Partnerships for the Goals
Citation
Pfajfar, D & Santoro, E 2011, 'Determinacy, stock market dynamics and monetary policy inertia', Economics Letters, vol. 112, no. 1, pp. 7-10. https://doi.org/10.1016/j.econlet.2011.02.033
URI
https://hdl.handle.net/20.500.14602/54951
License
info:eu-repo/semantics/closedAccess
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