Ramsey Monetary Policy in a New Keynesian Model with Endogenous Growth
Annicchiarico BarbaraRossi Lorenza
CEIS Research Paper
We study Ramsey monetary policy in a New Keynesian (NK) model with endogenous growth and knowledge spillovers external to each firm. We find that in contrast with the standard NK model, the Ramsey dynamics implies deviation from full inflation targeting in response to technology and government spending shocks
Number: 265
Keywords: Monetary Policy, Endogenous Growth, Ramsey Problem
JEL codes: E32, E52, O42
Volume: 11
Issue: 4
Date: Wednesday, February 13, 2013
Revision Date: Wednesday, February 13, 2013