An Austrian version of the lucas critique
β Scribed by Tobias Basse
- Book ID
- 113095284
- Publisher
- Springer-Verlag
- Year
- 2006
- Tongue
- English
- Weight
- 757 KB
- Volume
- 9
- Category
- Article
- ISSN
- 1098-3708
No coin nor oath required. For personal study only.
π SIMILAR VOLUMES
## Abstract This paper reconsiders the empirical relevance of the Lucas critique using a DSGE sticky price model in which a weak central bank response to inflation generates equilibrium indeterminacy. The model is calibrated to capture the magnitude of the historical shift in the Federal Reserve's
Lucas (In: Brunner, K., Meltzer, A.H. (Eds.), The Phillips Curve and the Labor Markets, Supplementary Series to the Journal of Monetary Economics, 1976, pp. 19 -46) pointed out, that when optimization is performed on a deterministic macro model, the resulting policy may not re ect the true optimal s