| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5062133 | Economics Letters | 2007 | 7 Pages |
Abstract
This note analytically characterizes the equilibrium dynamics of the Sidrauski model and reaches three conclusions regarding monetary policy: (i) it is typically not neutral, (ii) in some cases, it is not neutral even in the steady state, and (iii) a policy that has the nominal interest rate falling over time may sustain higher output and consumption forever.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Ricardo Reis,