Ramsey Monetary Policy in a New Keynesian Model with Endogenous Growth
11 Pages Posted: 23 Feb 2013 Last revised: 24 Jan 2014
Date Written: January 2013
We study Ramsey monetary policy in a New Keynesian (NK) model with endogenous growth and knowledge spillovers external to each firm. We find that in contrast with the standard NK model, the Ramsey dynamics implies deviation from full inflation targeting in response to technology and government spending shocks.
Keywords: Monetary Policy, Endogenous Growth, Ramsey Problem
JEL Classification: E32, E52, O42
Suggested Citation: Suggested Citation