Labor market search, the Taylor principle, and indeterminacy
成果类型：
Article
署名作者：
Kurozumi, Takushi; Van Zandweghe, Willem
署名单位：
Federal Reserve System - USA; Federal Reserve Bank - Kansas City; Bank of Japan
刊物名称：
JOURNAL OF MONETARY ECONOMICS
ISSN/ISSBN：
0304-3932
DOI：
10.1016/j.jmoneco.2010.07.002
发表日期：
2010
页码：
851-858
关键词：
摘要：
In a sticky-price model with labor market search and matching frictions, forecast-based interest rate policy almost always induces indeterminacy when it is strictly inflation targeting and satisfies the Taylor principle. Indeterminacy is due to a vacancy channel of monetary policy that makes inflation expectations self-fulfilling. The effect of this channel strengthens as the sluggishness of the adjustment of employment relative to that of consumption increases. When this relative sluggishness is high, the Taylor principle fails to ensure determinacy, regardless of whether the policy is forecast-based or outcome-based, whether it is strictly or flexibly inflation targeting, or contains policy rate smoothing. (C) 2010 Elsevier B.V. All rights reserved.
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