Change in monetary policy in the new keynesian model
Posted: Sat Mar 09, 2013 4:05 pmHi,
I would like to do a comparative static. Showing how changes in the parameteres of the monetary policy rule (e.g. i=rho+phi_pi*pi+phi_y*y+v, phi_pi would change from 1.5 to 1.1) would affect perfomance of y and pi, starting out of the steady state and getting back to the steady state.
How can I do this?
I would like to do a comparative static. Showing how changes in the parameteres of the monetary policy rule (e.g. i=rho+phi_pi*pi+phi_y*y+v, phi_pi would change from 1.5 to 1.1) would affect perfomance of y and pi, starting out of the steady state and getting back to the steady state.
How can I do this?