Technological change and monetary policy in a sticky-price model

Eiji Tsuzuki, Tomohiro Inoue

Research output: Contribution to journalArticle

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 languageEnglish
Pages (from-to)180-194
Number of pages15
JournalResearch in Economics
Volume65
Issue number3
DOIs
Publication statusPublished - 2011 Sep

Fingerprint

Sticky prices
Determinacy
Monetary policy
Technological change
Targeting
Inflation targeting
Share prices
Factors
Utility function
Induced technological change
Nonseparability
Labor
Profit

Keywords

  • Indeterminacy
  • New Keynesian Phillips curve
  • Share-price targeting
  • Taylor principle

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Technological change and monetary policy in a sticky-price model. / Tsuzuki, Eiji; Inoue, Tomohiro.

In: Research in Economics, Vol. 65, No. 3, 09.2011, p. 180-194.

Research output: Contribution to journalArticle

Tsuzuki, Eiji ; Inoue, Tomohiro. / Technological change and monetary policy in a sticky-price model. In: Research in Economics. 2011 ; Vol. 65, No. 3. pp. 180-194.
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