کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
957219 | 928515 | 2009 | 39 صفحه PDF | دانلود رایگان |
![عکس صفحه اول مقاله: Bubble-free policy feedback rules Bubble-free policy feedback rules](/preview/png/957219.png)
We consider a broad class of linear dynamic stochastic rational-expectations models made of a finite number N of structural equations for N+1N+1 endogenous variables and to be closed by one policy feedback rule. We design, for any model of this class and any stationary VARMA solution of that model, a “bubble-free” policy feedback rule ensuring that this solution is not only the unique stationary solution of the closed model, but also its unique solution. We apply these results to locally linearisable models of the monetary transmission mechanism and obtain interest-rate rules that not only ensure the local determinacy of the targeted equilibrium in the neighbourhood of the steady state considered, but also prevent the economy from gradually leaving this neighbourhood.
Journal: Journal of Economic Theory - Volume 144, Issue 4, July 2009, Pages 1521–1559