2013-03-02 papers

on Financial Development and Growth

Issue of 2013–03–02
one paper chosen by
Georg Man,

Ramsey Monetary Policy in a New Keynesian Model with Endogenous Growth By Barbara Annicchiarico; Lorenza Rossi

Ramsey Monetary Policy in a New Keynesian Model with Endogenous Growth

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:	https://d.repec.org/n?u=RePEc:rtv:ceisrp:265

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