Real Balance Effects, Determinacy and Optimal Monetary Policy

Piergallini Alessandro
CEIS Working Papers
This paper presents a dynamic New Keynesian macroeconomic model with real balance effects. Both the conditions of equilibrium determinacy under an interest rate rule of the Taylor-type and the implications for optimal monetary policy are considered. We fi
Number: 200
Date: Thursday 01 January 2004
Revision Date: Sunday 01 February 2004