CEIS Research Papers

Ramsey Monetary Policy in a New Keynesian Model with Endogenous Growth
Annicchiarico Barbara and Rossi Lorenza
CEIS Research Paper

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

Number: 265

Keywords: Monetary Policy, Endogenous Growth, Ramsey Problem

JEL-codes: E32, E52, O42

Volume: 11

Issue: 4

Date: 13/02/2013