Ramsey Monetary Policy and GHG Emission Control
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