On the mechanics of New-Keynesian models

• 成果类型: Article; Proceedings Paper
• 署名作者: Rupert, Peter; Sustek, Roman
• 署名单位: University of California System; University of California Santa Barbara; University of London; Queen Mary University London
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2019.01.024
• 发表日期: 2019
• 页码: 53-69
• 关键词: New-Keynesian models; monetary transmission mechanism; Real interest rate channel; Capital

摘要

The monetary transmission mechanism in New-Keynesian models is put to scrutiny. We show that, contrary to the conventional view, the transmission mechanism does not operate through the real interest rate channel. Instead, equilibrium inflation is approximately determined as in a flexible-price model; output is then pinned down by the New-Keynesian Phillips curve. The real rate only reflects the feasibility to keep consumption smooth when income changes. Contractionary monetary policy shocks reducing output and inflation are consistent with an increase, decline, or no change in the real rate. Consistency with the real rate channel is observational, not structural. (C) 2019 Elsevier B.V. All rights reserved.