Is the new keynesian is curve forward looking?
Autor(a) principal: | |
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Data de Publicação: | 2018 |
Tipo de documento: | Relatório |
Idioma: | por |
Título da fonte: | Repositório Institucional do FGV (FGV Repositório Digital) |
Texto Completo: | http://hdl.handle.net/10438/24717 |
Resumo: | This paper analyzes the solutions of the canonical and hybrid New Keynesian IS curve difference equation. It shows that the usual forward solution is ruled out because it is at odds with the underlying economic theory. This implies that current and expected future real interest rates do not matter for the determination of the current output gap. Indeed, the new Keynesian IS curve has multiple backward solutions and determines not the level of the output gap, as does the traditional IS curve, but its expected rate of change. The paper also shows that the hybrid IS has (multiple) backward solutions regardless the size of the forward coefficient. |
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Barbosa, Fernando de HolandaEscolas::EPGEFGV2018-09-06T13:43:21Z2018-09-06T13:43:21Z2018-040104-8910http://hdl.handle.net/10438/24717This paper analyzes the solutions of the canonical and hybrid New Keynesian IS curve difference equation. It shows that the usual forward solution is ruled out because it is at odds with the underlying economic theory. This implies that current and expected future real interest rates do not matter for the determination of the current output gap. Indeed, the new Keynesian IS curve has multiple backward solutions and determines not the level of the output gap, as does the traditional IS curve, but its expected rate of change. The paper also shows that the hybrid IS has (multiple) backward solutions regardless the size of the forward coefficient.porEscola de Pós-Graduação em Economia da FGVEnsaios Econômicos;797New Keynesian modelsIS curveTransversality conditionForward and backward solutionsUnique and multiple rational expectations equilibriumEconomiaEconomia keynesianaPolítica monetáriaIs the new keynesian is curve forward looking?info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/reportreponame:Repositório Institucional do FGV (FGV Repositório Digital)instname:Fundação Getulio Vargas (FGV)instacron:FGVinfo:eu-repo/semantics/openAccessTEXTis-the-new-keynesian-is-curve-forward-looking.pdf.txtis-the-new-keynesian-is-curve-forward-looking.pdf.txtExtracted texttext/plain20902https://repositorio.fgv.br/bitstreams/13da487c-332d-4908-a6ad-0c6f7edebba5/download8e9d93edaf3fb0ea581b9376b82404c0MD54ORIGINALis-the-new-keynesian-is-curve-forward-looking.pdfis-the-new-keynesian-is-curve-forward-looking.pdfapplication/pdf923704https://repositorio.fgv.br/bitstreams/19e8919d-a552-406e-9d22-7730fe7fc32a/downloadd85cc8ddcc00a6a2d49573b3337aaea4MD51THUMBNAILis-the-new-keynesian-is-curve-forward-looking.pdf.jpgis-the-new-keynesian-is-curve-forward-looking.pdf.jpgGenerated Thumbnailimage/jpeg3676https://repositorio.fgv.br/bitstreams/ac507287-585a-45a6-981b-652c6d28781f/downloadcd1bbea14ae674554591c73e9ca85119MD5510438/247172023-11-28 11:52:30.934open.accessoai:repositorio.fgv.br:10438/24717https://repositorio.fgv.brRepositório InstitucionalPRIhttp://bibliotecadigital.fgv.br/dspace-oai/requestopendoar:39742023-11-28T11:52:30Repositório Institucional do FGV (FGV Repositório Digital) - Fundação Getulio Vargas (FGV)false |
dc.title.eng.fl_str_mv |
Is the new keynesian is curve forward looking? |
title |
Is the new keynesian is curve forward looking? |
spellingShingle |
Is the new keynesian is curve forward looking? Barbosa, Fernando de Holanda New Keynesian models IS curve Transversality condition Forward and backward solutions Unique and multiple rational expectations equilibrium Economia Economia keynesiana Política monetária |
title_short |
Is the new keynesian is curve forward looking? |
title_full |
Is the new keynesian is curve forward looking? |
title_fullStr |
Is the new keynesian is curve forward looking? |
title_full_unstemmed |
Is the new keynesian is curve forward looking? |
title_sort |
Is the new keynesian is curve forward looking? |
author |
Barbosa, Fernando de Holanda |
author_facet |
Barbosa, Fernando de Holanda |
author_role |
author |
dc.contributor.unidadefgv.por.fl_str_mv |
Escolas::EPGE |
dc.contributor.affiliation.none.fl_str_mv |
FGV |
dc.contributor.author.fl_str_mv |
Barbosa, Fernando de Holanda |
dc.subject.eng.fl_str_mv |
New Keynesian models IS curve Transversality condition Forward and backward solutions Unique and multiple rational expectations equilibrium |
topic |
New Keynesian models IS curve Transversality condition Forward and backward solutions Unique and multiple rational expectations equilibrium Economia Economia keynesiana Política monetária |
dc.subject.area.por.fl_str_mv |
Economia |
dc.subject.bibliodata.por.fl_str_mv |
Economia keynesiana Política monetária |
description |
This paper analyzes the solutions of the canonical and hybrid New Keynesian IS curve difference equation. It shows that the usual forward solution is ruled out because it is at odds with the underlying economic theory. This implies that current and expected future real interest rates do not matter for the determination of the current output gap. Indeed, the new Keynesian IS curve has multiple backward solutions and determines not the level of the output gap, as does the traditional IS curve, but its expected rate of change. The paper also shows that the hybrid IS has (multiple) backward solutions regardless the size of the forward coefficient. |
publishDate |
2018 |
dc.date.accessioned.fl_str_mv |
2018-09-06T13:43:21Z |
dc.date.available.fl_str_mv |
2018-09-06T13:43:21Z |
dc.date.issued.fl_str_mv |
2018-04 |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/report |
format |
report |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10438/24717 |
dc.identifier.issn.none.fl_str_mv |
0104-8910 |
identifier_str_mv |
0104-8910 |
url |
http://hdl.handle.net/10438/24717 |
dc.language.iso.fl_str_mv |
por |
language |
por |
dc.relation.ispartofseries.por.fl_str_mv |
Ensaios Econômicos;797 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.publisher.none.fl_str_mv |
Escola de Pós-Graduação em Economia da FGV |
publisher.none.fl_str_mv |
Escola de Pós-Graduação em Economia da FGV |
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FGV |
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Repositório Institucional do FGV (FGV Repositório Digital) |
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Repositório Institucional do FGV (FGV Repositório Digital) |
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