Policy trade-off in the long run: A new Keynesian model with technological change and money growth

Eiji Tsuzuki, Tomohiro Inoue

研究成果: Article

2 引用 (Scopus)

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In this study, we introduce a constant rate of technological change and money growth into the standard new Keynesian model, in which both prices and nominal wages are supposed to be sticky. Using such a model, we examine whether a policy trade-off exists between curbing inflation and stabilizing the welfare-relevant output gap in the steady state. If we take only price stickiness into consideration, a policy trade-off does not occur. However, if both nominal wage stickiness and price stickiness are taken into consideration, a policy trade-off occurs.

元の言語English
ページ(範囲)943-950
ページ数8
ジャーナルEconomic Modelling
27
発行部数5
DOI
出版物ステータスPublished - 2010 9

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ASJC Scopus subject areas

  • Economics and Econometrics

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