Taylor Rule Under Financial Instability /

This paper contributes to the analysis of monetary policy in the face of financial instability. In particular, we extend the standard new Keynesian dynamic stochastic general equilibrium (DSGE) model with sticky prices to include a financial system. Our simulations suggest that if financial instabil...

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Bibliographic Details
Main Author: Cihak, Martin
Other Authors: Bauducco, Sofia, Bulir, Ales
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2008.
Series:IMF Working Papers; Working Paper ; No. 2008/018
Online Access:Full text available on IMF

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