In the discrete-time new-Keynesian model with public debt, Ramsey optimal policy eliminates indeterminacy of simple-rules multiple equilibria between fiscal theory price level versus an unpleasant equilibrium. If debt volatility is taken into account loss function, interest rate responds to besides inflation and output gap. Else, Taylor rule identical when there zero debt. The fiscal-rule param...

In the standard New Keynesian model, monetary policy is often described by an interest rate rule (e.g. a Taylor rule) that moves the interest rate in response to deviations of inflation and some measure of economic activity from target. Nominal interest rates are bound from below by 0 – since money is storable, one would never accept a negative nominal return. How does the behavior of the NK mo...

The motivation for this paper comes from other papers treating the fractional derivatives. We introducea new definition of derivative which obeys classical properties including linearity, product rule, quotient rule, power chain Rolle’s theorem, mean value theorem and Taylor series. Usage thedefined is given in example section shows how our can be used solving differential equations. ...

We calculate optimal monetary policy rules for several variants of a simple optimizing model of the monetary transmission mechanism with sticky prices and/or wages. We show that robustly optimal rules can be represented by interest-rate feedback rules that generalize the celebrated proposal of Taylor (1993). Optimal rules, however, require that the current interest-rate operating target depend ...

The subject of the study is processes transformation monetary policy Bank Russia in new economy, contributing to introduction digital innovations. purpose work establish, through application Taylor rule, dynamics key rate Russian Federation. main research tools were correlation analysis and economic modeling rule EViews program based on empirical data In course study, goals, principles rules ar...

Abstract We present a family of high-order trapezoidal rule-based quadratures for class singular integrals, where the integrand has point singularity. The part is expanded in Taylor series involving terms increasing smoothness. are based on rule, with quadrature weights Cartesian nodes close to singularity judiciously corrected expansion. High-order accuracy can be achieved by utilizing suffici...

In a sticky-price model where firms finance their production inputs, there is both a lower and an upper bound on the central bank’s inflation response necessary to rule out the possibility of self-fulfilling inflation expectations. This paper shows that real wage rigidities decrease this upper bound, but coefficients in the range of those on the Taylor rule place the economy well within the det...

The objective of the paper is to examine applicability of Taylor type rule in current Indian economic environment. India has gradually slackened its control on several macroeconomic variables and allowed influence of market forces in many areas. In this scenario, we tried to examine an extended Taylor type equation involving interest rates, output gap, inflation gap, foreign exchanges rate, sto...

This study examines the expectational stability of the rational expectations equilibria (REE) under alternative Taylor rules when trend inflation is non-zero. We find that when trend inflation is high, the REE is likely to be expectationally unstable. This result holds true regardless of the nature of the data (such as contemporaneous data, forecast, and lagged data) introduced in the Taylor ru...

• A DSGE model of the Chinese economy with money and shadow banking is developed estimated Indirect Inference. The policy deleveraging restricting reduces private investment lowers aggregate output. In terms stabilization, a nominal GDP targeting superior to Taylor Rule, Friedman rule, or price level rule. This paper develops using framework that accommodates sector money. used shed light on pe...