| By: |
Barbara Annicchiarico (University of Rome "Tor Vergata");
Lorenza Rossi (University of Pavia, Department of Economics and Business) |
| 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: |
E32 E52 O42 |
| Date: |
2013–02–13 |
| URL: |
http://d.repec.org/n?u=RePEc:rtv:ceisrp:265&r=fdg |