TY - JOUR
T1 - Technological change and monetary policy in a sticky-price model
AU - Tsuzuki, Eiji
AU - Inoue, Tomohiro
PY - 2011/9
Y1 - 2011/9
N2 - 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.
AB - 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.
KW - Indeterminacy
KW - New Keynesian Phillips curve
KW - Share-price targeting
KW - Taylor principle
UR - http://www.scopus.com/inward/record.url?scp=79957959109&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=79957959109&partnerID=8YFLogxK
U2 - 10.1016/j.rie.2010.08.001
DO - 10.1016/j.rie.2010.08.001
M3 - Article
AN - SCOPUS:79957959109
VL - 65
SP - 180
EP - 194
JO - Research in Economics
JF - Research in Economics
SN - 1090-9443
IS - 3
ER -