| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5059510 | Economics Letters | 2013 | 5 Pages |
Abstract
We study interest rate rules responding to stock prices in a sticky-price sticky-wage New-Keynesian framework subject to consumption externalities. For given wage rigidity, such rules are beneficial to equilibrium determinacy if households' preferences feature sufficiently strong keeping-up-with-the-Joneses externalities.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Marco Airaudo,