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Discretionary monetary policy in the calvo model∗ (2008).
| Content Provider | CiteSeerX |
|---|---|
| Author | Willem Van, Z. Alex, Weghe Wolman, Er L. |
| Abstract | We study discretionary equilibrium in the Calvo pricing model for a monetary authority that chooses the money supply. Unlike the two-period Taylor model, policy does not accommodate predetermined prices in a way that inevitably leads to multiple private-sector equi-libria. For the examples we compute, we find a unique equilibrium characterized by a steady state inflation rate that exceeds five per-cent. |
| File Format | |
| Publisher Date | 2008-01-01 |
| Access Restriction | Open |
| Subject Keyword | Discretionary Monetary Policy Calvo Model Predetermined Price Monetary Authority Money Supply Two-period Taylor Model Private-sector Equi-libria Steady State Inflation Rate Calvo Pricing Model Discretionary Equilibrium Unique Equilibrium |
| Content Type | Text |
