A New Keynesian model with technological change

We develop a New Keynesian model incorporating technological change. The steady-state output analysis provides the conclusion that eliminating the output gap requires the rate of money growth to be equal to the rate of technological change. ► We develop a New Keynesian model incorporating constant t...

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Bibliographic Details
Published in:	Economics letters Vol. 110; no. 3; pp. 206 - 208
Main Authors:	Inoue, Tomohiro, Tsuzuki, Eiji
Format:	Journal Article
Language:	English
Published:	Elsevier B.V 01-03-2011 Elsevier
Series:	Economics Letters
Subjects:	Economic models Monetary growth Money growth Neokeynesianism New Keynesian Phillips curve Output gap Price stickiness Sticky prices Technological change Technological change Price stickiness Money growth Output gap New Keynesian Phillips curve E31 New Keynesian Phillips curve E12 Technological change Price stickiness Output gap O42 Money growth
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Summary:	We develop a New Keynesian model incorporating technological change. The steady-state output analysis provides the conclusion that eliminating the output gap requires the rate of money growth to be equal to the rate of technological change. ► We develop a New Keynesian model incorporating constant technological change. ► We analyze the steady-state output of the model. ► There can be a long-run output gap. ► The money growth rate should be equal to the technological change rate.
Bibliography:	ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23
ISSN:	0165-1765 1873-7374
DOI:	10.1016/j.econlet.2010.11.020