Munich Personal RePEc Archive

The perils of first-order conditions of New Keynesian models

Kim, Minseong (2016): The perils of first-order conditions of New Keynesian models.

WarningThere is a more recent version of this item available.
[img]
Preview
PDF
MPRA_paper_70753.pdf

Download (202kB) | Preview

Abstract

For deriving equilibrium of sticky-price/monopolistic competition New Keynesian models, first-order conditions are often used. This paper shows that they may not be sufficient and presents a case out of a simple model where there exists no equilibrium. This is true even when Taylor rule is assumed.

Available Versions of this Item

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.