Ramsey Monetary Policy in a New Keynesian Model with Endogenous Growth

11 Pages Posted: 23 Feb 2013 Last revised: 24 Jan 2014

See all articles by Barbara Annicchiarico

Barbara Annicchiarico

University of Rome, Tor Vergata - Department of Economics and Finance; University of Rome Tor Vergata - Centre for International Studies on Economic Growth (CEIS)

Lorenza Rossi

University of Pavia - Department of Economics and Management

Date Written: January 2013

Abstract

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

Annicchiarico, Barbara and Rossi, Lorenza, Ramsey Monetary Policy in a New Keynesian Model with Endogenous Growth (January 2013). CEIS Working Paper No. 265. Available at SSRN: https://ssrn.com/abstract=2216627 or http://dx.doi.org/10.2139/ssrn.2216627

Barbara Annicchiarico

University of Rome, Tor Vergata - Department of Economics and Finance ( email )

Rome, I-00133
Italy

University of Rome Tor Vergata - Centre for International Studies on Economic Growth (CEIS) ( email )

Via Columbia, 2
Rome, I-00133
Italy

Lorenza Rossi (Contact Author)

University of Pavia - Department of Economics and Management ( email )

via san Felice, 5
27100 Pavia, 27100
Italy

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