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Economics Letters

Endogenous growth and the Taylor principle

This paper analyzes conditions for equilibrium determinacy in a new Keynesian model with endogenous growth. Endogenous growth shrinks the determinacy region considerably. Complying with the Taylor principle is not sufficient for equilibrium determinacy.

Micheli, M. (2018), Endogenous growth and the Taylor principle. Economics Letters, 167, 1-4

DOI: 10.1016/j.econlet.2018.03.002