Is the new keynesian is curve forward looking?

Detalhes bibliográficos
Autor(a) principal: Barbosa, Fernando de Holanda
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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spelling 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
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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
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dc.relation.ispartofseries.por.fl_str_mv Ensaios Econômicos;797
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
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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
dc.source.none.fl_str_mv reponame:Repositório Institucional do FGV (FGV Repositório Digital)
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reponame_str Repositório Institucional do FGV (FGV Repositório Digital)
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