Technological change and monetary policy in a sticky-price model

Tsuzuki, Eiji; Inoue, Tomio

doi:10.1016/j.rie.2010.08.001

Cited by 3 publications

(4 citation statements)

References 20 publications

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“…We refer to such a steady state as the no-growth steady state. At the no-growth steady state, since the free-entry condition (7) does not hold with an equality, (14), (15) In addition, n x l l increases.…”

Section: No-growth Steady Statementioning

confidence: 99%

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R & D-Based Growth Model with Nominal Wage Stickiness

Shinagawa¹,

Inoue²

2016

TEL

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In this study, we introduce nominal wage stickiness into an endogenous growth model based on R & D. This study examines how money growth affects long-run economic growth. We find that there exists a unique balanced growth path for sufficiently high rates of money growth, and that the economy exhibits sustained growth based on sustained R & D. Faster money growth results in greater employment and faster economic growth along such a balanced growth path. Furthermore, under some parameter restrictions, no balanced growth path exists for low rates of money growth; the economy is trapped in a steady state without long-run growth. These results suggest that money growth may be an important factor for long-run economic growth.

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Section: No-growth Steady Statementioning

confidence: 99%

“…See for example [21]- [26] 3 . Our 2 [14] have also proposed a new Keynesian endogenous growth model introducing human capital accumulations.…”

Section: Introductionmentioning

confidence: 99%

R & D-Based Growth Model with Nominal Wage Stickiness

Shinagawa¹,

Inoue²

2016

TEL

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“…Such a rule represents the practice of asset-price targeting. Carlstrom and Fuerst [11] show that asset-price targeting increases the possibility of indeterminacy; however, Tsuzuki [22] shows that Carlstrom and Fuerst's [11] result can be overturned by introducing technological changes induced by educational investment. the assumption of money in the utility function (MIUF).…”

Section: Introductionmentioning

confidence: 99%

“…Moreover, Tsuzuki [21] examines the effects of a monetary policy lag using an NK model with 2 Carlstrom and Fuerst [11] and Tsuzuki [22] consider a rule wherein the nominal interest rate is changed not in response to the inflation rate but to asset prices. Such a rule represents the practice of asset-price targeting.…”

Section: Introductionmentioning

confidence: 99%

Determinacy of Equilibrium in a New Keynesian Model with Monetary Policy Lag

Tsuzuki¹

2015

IJEBO

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Abstract:We use the New Keynesian continuous-time framework to theoretically investigate the effects of a lag in a central bank's response to economic fluctuations (i.e., monetary policy lag) on local equilibrium determinacy. In the case of a policy without lag, equilibrium is indeterminate even though a central bank's policy response is sufficiently active. However, in the case of a policy with lag, an active monetary policy can contribute to local equilibrium determinacy if the lag is modest.

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