Article ID Journal Published Year Pages File Type
9549480 Economics Letters 2005 7 Pages PDF
Abstract
We examine existence and stability under learning of sunspot equilibria in a New Keynesian model incorporating inertia. Indeterminacy remains prevalent, stable sunspots abound, and inertia in IS and aggregate supply (AS) relations do not significantly impact the policy region containing stable sunspots.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Monetary policy and stable indeterminacy with inertia
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