Solving Monetary (MIU) models with Linearized Euler Equations: Method of Undetermined Coefficients

Document Type: Research Paper

Authors

1 Department of Business Management, Tonekabon Branch, Islamic Azad University, Iran

2 Department of Management, Aliabad katoul branch, Islamic Azad University, Iran

Abstract

This paper attempts to solve a benchmark money in utility model by first order Taylor approximation to the policy function. After a brief summary of recent development in first order Taylor approximation in solving dynamic stochastic general equilibrium models, we choose Sidrauski’s Money in utility model as a standard model and follow the approach proposed by Uhlig [1] to solve for the recursive law of motion at first order.

Keywords

Main Subjects

International Journal of Research in Industrial Engineering

Volume 6, Issue 2
Spring 2017
Page 172-183

Files

Supplementary Files

Share

How to cite

Statistics