Nutahara, Kengo (2010): Asset prices and monetary policy in a sticky-price economy with financial frictions.
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A recent study shows that equilibrium indeterminacy arises if monetary policy responds to asset prices, especially share prices, in a sticky-price economy. We show that equilibrium indeterminacy never arises if the working capital of firms is subject to their asset values by financial frictions.
|Item Type:||MPRA Paper|
|Original Title:||Asset prices and monetary policy in a sticky-price economy with financial frictions|
|English Title:||Asset prices and monetary policy in a sticky-price economy with financial frictions|
|Keywords:||asset prices; financial frictions; equilibrium indeterminacy; monetary policy; sticky prices|
|Subjects:||E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles
E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy
E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy
C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C62 - Existence and Stability Conditions of Equilibrium
|Depositing User:||Kengo Nutahara|
|Date Deposited:||26. Jul 2010 20:26|
|Last Modified:||11. Feb 2013 23:02|
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