Suche Kontakt Impressum

Institut für VWL | UnivIS | ERASMUS | QIS | Site Plan

Christian-Albrechts-Universität zu Kiel

Institut für Volkswirtschaftslehre - Department of Economics
Economics Working Papers

Economics Working Papers: Abstract 2008-14


Nummer

2008-14

Autoren

Reiner Franke, Peter Flaschel

 

Titel

 

A Proof of Determinacy in the New-Keynesian Sticky Wages and Prices Model
Abstract The paper is concerned with determinacy in a version of the New-Keynesian model that integrates imperfect competition and nominal price and wage setting on goods and labour markets. The model is reformulated with an explicit period of arbitrary length and shown to remain well-defined as the period shrinks to zero. The 4×4 constituent matrix of the model’s continuous-time counterpart is mathematically tractable and its determinacy results carry over to the period model at least if the period is sufficiently short. This being understood, it is proved that determinacy is (essentially) ensured if an extended Taylor principle requirement is met.

Keywords: Determinacy, New-Keynesian wage and price Phillips curves, variable period length, continuous-time limit, Taylor principle

JEL classification: E31, E32, E52

 

Links

 

weiter zum Full Text

zurück zur Übersicht