Optimal interest rate rules, asset prices, and credit frictions

DOI10.1016/j.jedc.2006.11.006zbMath1163.91499OpenAlexW2065719927MaRDI QIDQ1027416

Ester Faia, Tommaso Monacelli

Publication date: 1 July 2009

Published in: Journal of Economic Dynamics \& Control (Search for Journal in Brave)

Full work available at URL: http://repec.org/sce2005/up.2110.1107765171.pdf

zbMATH Keywords

price stickinessasset pricescredit frictionsoptimal simple interest rate rules

Mathematics Subject Classification ID

Macroeconomic theory (monetary models, models of taxation) (91B64)

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Cites Work

• Solving dynamic general equilibrium models using a second-order approximation to the policy function
• Optimal contracts and competitive markets with costly state verification
• Agency costs and business cycles
• Calculating and using second-order accurate solutions of discrete time dynamic equilibrium models
• Incentive-Compatible Debt Contracts: The One-Period Problem

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