An alternative to New-Keynesian models for the study of optimal (monetary) policy∗

Abstract

The alternative, based on Cavalcanti-Wallace 1999, is one way to bridge the gap between two extreme models: an economy with no monitoring (and, therefore, no credit) and an economy with perfect monitoring (and, therefore, no role for money). Here, using an outside-money version of the model, optima for two examples, drawn from earlier work by Deviatov and… (More)

3 Figures and Tables

Cite this paper

@inproceedings{Wallace2013AnAT, title={An alternative to New-Keynesian models for the study of optimal (monetary) policy∗}, author={Neil Wallace}, year={2013} }