Add to ORKGThis paper explores how the introduction of deep habits in a standard new-Keynesian model affects the properties of widely used interest rate rules. In particular, an interest rate rule satisfying the Taylor principle is no longer a su±cient condition to guarantee determinacy. Including interest rate smoothing and a response to output deviations from steady state significantly improve the regions of determinacy. However, under all the simple interest rate rules considered here with contemporaneous variables, determinacy is not guaranteed for very high degree of deep habits. The intuition behind these findings is tied to how deep habits give rise to counter-cyclical markups, a property that makes it an appealing feature in the study of deman...
This paper argues that, in the presence of nominal wage rigidities, the existence of Rule-of-Thumb a...
Chapter 1 Using a medium scale general equilibrium New Keynesian business cycle model with macroprud...
Habit formation is a fixture of contemporary new-Keynesian models. The vast majority assume that ag...
This paper explores how the introduction of deep habits in a standard new-Keynesian model affects th...
This article studies under which conditions interest rate rules "à la Taylor" results, which are sta...
This article studies under which conditions interest rate rules "à la Taylor" [1993. Discretion vers...
We introduce increasing returns to scale into an otherwise standard New Keynesian model with capital...
We introduce rule-of-thumb consumers in an otherwise standard dynamic sticky price model, and show h...
It has been argued that rule of thumb consumers substantially alter the determinacy properties of si...
A well-known determinacy condition on interest rate rules is the "Taylor principle," which states th...
A New-Keynesian model with deep habits and optimal monetary policy delivers a larger-than-one multip...
A most wellknown determinacy condition on interest rate rules is the “Taylor principle”, which says ...
Positive trend inflation shrinks the determinacy region of a basic new Keynesian DSGE model when mon...
The Taylor Principle is often used to explain macroeconomic stability (see, e.g., Clarida et al. 200...
I study the welfare gains from commitment relative to discretion in the context of an equilibrium mo...
This paper argues that, in the presence of nominal wage rigidities, the existence of Rule-of-Thumb a...
Chapter 1 Using a medium scale general equilibrium New Keynesian business cycle model with macroprud...
Habit formation is a fixture of contemporary new-Keynesian models. The vast majority assume that ag...
This paper explores how the introduction of deep habits in a standard new-Keynesian model affects th...
This article studies under which conditions interest rate rules "à la Taylor" results, which are sta...
This article studies under which conditions interest rate rules "à la Taylor" [1993. Discretion vers...
We introduce increasing returns to scale into an otherwise standard New Keynesian model with capital...
We introduce rule-of-thumb consumers in an otherwise standard dynamic sticky price model, and show h...
It has been argued that rule of thumb consumers substantially alter the determinacy properties of si...
A well-known determinacy condition on interest rate rules is the "Taylor principle," which states th...
A New-Keynesian model with deep habits and optimal monetary policy delivers a larger-than-one multip...
A most wellknown determinacy condition on interest rate rules is the “Taylor principle”, which says ...
Positive trend inflation shrinks the determinacy region of a basic new Keynesian DSGE model when mon...
The Taylor Principle is often used to explain macroeconomic stability (see, e.g., Clarida et al. 200...
I study the welfare gains from commitment relative to discretion in the context of an equilibrium mo...
This paper argues that, in the presence of nominal wage rigidities, the existence of Rule-of-Thumb a...
Chapter 1 Using a medium scale general equilibrium New Keynesian business cycle model with macroprud...
Habit formation is a fixture of contemporary new-Keynesian models. The vast majority assume that ag...