Inflation determination with Taylor rules: Is new-Keynesian analysis critically flawed?

• 成果类型: Article
• 署名作者: McCallum, Bennett T.
• 署名单位: Carnegie Mellon University; National Bureau of Economic Research
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2009.10.003
• 发表日期: 2009
• 页码: 1101-1108
• 关键词: Determinacy; Transversality; learnability; New Keynesian; Explosive

摘要

Cochrane (2007) has strongly questioned the basic economic logic of current monetary policy analysis, arguing that New Keynesian (NK) models imply rational expectations paths with explosive inflation that do not imply explosions in real variables relevant for transversality conditions. Consequently, the usual logic does not rule out solutions with explosive inflation. That result does not, however, justify negative conclusions about NK analysis, for a different criterion is logically satisfactory. It is that, to be plausible, a RE solution must satisfy the property of least-squares learnability. Adoption of this criterion serves to justify in principle the bulk of current mainstream analysis. (C) 2009 Elsevier B.V. All rights reserved.