| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 965548 | Journal of Macroeconomics | 2012 | 21 Pages |
Abstract
⺠I introduce real effects of stock-price (SP) fluctuations in a small scale DSGE model. ⺠Price Stability requires a dedicated response to SP fluctuations due to demand shocks. ⺠It does not, however, if SP fluctuations are due to supply shocks. ⺠Taylor-rules responding to SP levels raise the chances of sunspot-driven fluctuations. ⺠TR responding to SP growth, instead, do not and may imply substantial stability gains.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Salvatore Nisticò,