Monetary Policy and Bubbles in a New Keynesian Model with Overlapping Generations /
Galí, Jordi.
Monetary Policy and Bubbles in a New Keynesian Model with Overlapping Generations / Jordi Galí. - Cambridge, Mass. National Bureau of Economic Research 2020. - 1 online resource: illustrations (black and white); - NBER working paper series no. w26796 . - Working Paper Series (National Bureau of Economic Research) no. w26796. .
February 2020.
I analyze an extension of the New Keynesian model that features overlapping generations of finitely-lived agents and (stochastic) transitions to inactivity. In contrast with the standard model, the proposed framework allows for the existence of rational expectations equilibria with asset price bubbles. I study the conditions under which bubble-driven fluctuations may emerge and the type of monetary policy rules that may prevent them. I conclude by discussing some of the model's welfare implications.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Monetary Policy and Bubbles in a New Keynesian Model with Overlapping Generations / Jordi Galí. - Cambridge, Mass. National Bureau of Economic Research 2020. - 1 online resource: illustrations (black and white); - NBER working paper series no. w26796 . - Working Paper Series (National Bureau of Economic Research) no. w26796. .
February 2020.
I analyze an extension of the New Keynesian model that features overlapping generations of finitely-lived agents and (stochastic) transitions to inactivity. In contrast with the standard model, the proposed framework allows for the existence of rational expectations equilibria with asset price bubbles. I study the conditions under which bubble-driven fluctuations may emerge and the type of monetary policy rules that may prevent them. I conclude by discussing some of the model's welfare implications.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.