| Author Name | NUTAHARA Kengo (Senshu University) |
|---|---|
| Creation Date/NO. | December 2010 10-E-060 |
| Research Project | Building a New Macroeconomic Model and Policies in Times of Economic Crisis |
| Download / Links |
Abstract
A recent study shows that equilibrium indeterminacy arises if monetary policy responds to asset prices, especially share prices, in a sticky-price economy. We show that equilibrium indeterminacy never arise if the working capital of firms is subject to their asset values by financial frictions.
