Ramsey Monetary Policy and GHG Emission Control

Annicchiarico BarbaraDi Dio Fabio
CEIS Research Paper
We study Ramsey monetary policy in a New Keynesian model embodying pollutant emissions and greenhouse gas emissions control policy. We find that the optimal response of inflation to technology shocks is crucially affected by the environmental regime adopted for emissions control.
Number: 330
Keywords: Monetary Policy, Ramsey Problem, GHG Emission Control Policy
JEL codes: E32,E52,Q58
Volume: 12
Issue: 10
Date: Wednesday, September 24, 2014
Revision Date: Wednesday, September 24, 2014