In search of the liquidity effect in a modern monetary model

• 成果类型: Article
• 署名作者: Keen, BD
• 署名单位: Texas Tech University System; Texas Tech University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2003.12.003
• 发表日期: 2004
• 页码: 1467-1494
• 关键词: Monetary policy; business cycles; sticky prices; Limited participation

摘要

This paper examines the impact of a monetary policy shock in a dynamic stochastic general equilibrium model with sticky prices and financial market frictions. First, we examine the shortcomings of monetary models emphasizing these frictions individually. The model then is specified to limit the response of prices and savings to a current period monetary disturbance. Our results show that this model can account for the following key responses to an expansionary monetary policy shock: a fall in the nominal interest rate; a rise in output, consumption, and investment; and a gradual increase in the price level. Finally, a detailed sensitivity analysis shows the model's results depend on the parameters assigned to critical structural features. (C) 2004 Elsevier B.V. All rights reserved.