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Firm-Specific Investment, Sticky Prices, and the Taylor Principle

Author(s) : Sveen, Tommy , Weinke, Lutz
Description : According to the Taylor principle a central bank should adjust the nominal interest rate by more than one-for-one in response to changes in current inflation. Most of the existing literature supports the view that by following this simple recommendation a central bank can avoid being a source of unn...
Repository : e-Repositori UPF , View repository documents
Language(s) : English
Subject(s) : Sticky prices, aggregate investment, monetary policy
Publisher(s) :
Contributor(s) : Universitat Pompeu Fabra. Departament d'Economia i Empresa
Source(s) :
Publication Date(s) : 2012-07-11