15 Pages Posted: 26 Sep 2014
Date Written: September 24, 2014
We study Ramsey monetary policy in a New Keynesian model embodying pollutant emissions and greenhouse gas emissions control policy. We find that the optimal response of inflation to technology shocks is crucially affected by the environmental regime adopted for emissions control.
Keywords: Monetary Policy, Ramsey Problem, GHG Emission Control Policy.
JEL Classification: E32, E52, Q58.
Suggested Citation: Suggested Citation
Annicchiarico, Barbara and Di Dio, Fabio, Ramsey Monetary Policy and GHG Emission Control (September 24, 2014). CEIS Working Paper No. 330. Available at SSRN: https://ssrn.com/abstract=2500887 or http://dx.doi.org/10.2139/ssrn.2500887