Financial frictions,the Phillips curve and monetary policy

Autor:	Lieberknecht, Philipp
Jazyk:	angličtina
Rok vydání:	2019
Předmět:	financial accelerator financial frictions Phillips curve optimal monetary policy ddc:330 E44 E58 E52 E42
Popis:	This paper proposes a tractable financial accelerator New Keynesian DSGE modelthat allows for closed-form solutions. In the presence of financial frictions, theNew Keynesian Phillips curve features a flat slope with respect to the output gapand is strongly forward-looking. All shocks cause endogenous cost-push effects inthe Phillips curve, leading to larger inflation responses and a breakdown of divinecoincidence. The central bank's contemporaneous trade-off between output gap andinflation stabilization is aggravated. Optimal monetary policy is strongly forward-looking and geared towards inflation stabilization.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=od______1687::b1b8f6239e45d09e868c3b8ef8fff24a https://hdl.handle.net/10419/213075 Zobrazit plný text záznamu