Stability of steady states in a model of pleasant monetarist arithmetic

Arbeitspapier

In this paper the authors study the stability properties of the alternative steady-state equilibria that arise in a neoclassical production model that delivers pleasant monetarist arithmetic. They show that if the government’s monetary policy rule involves a fixed money supply growth rate, then "pleasant arithmetic" steady states—steady states from which a permanent increase in the money growth and inflation rates is associated with a permanent decrease in the real interest rate and a permanent increase in the level of output—are dynamically stable.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2001-20

Classification and Topics

• Classification: Wirtschaft
• Subject: Econometric models ; Monetary policy

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Espinosa-Vega, Marco ; Russell, Steven
• Event: Veröffentlichung
• (who): Federal Reserve Bank of Atlanta
• (where): Atlanta, GA
• (when): 2001

Further information

• Handle: http://hdl.handle.net/10419/100749
• Last update: 10.03.2025, 11:43 AM CET