Revealing the naked truth behind price determinacy, infinite-horizon rational expectations, and inflation targeting
Author
Abstract
Suggested Citation
Download full text from publisher
References listed on IDEAS
- Bennett McCallum, 1999.
"Role of the Minimal State Variable Criterion in Rational Expectations Models,"
International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 6(4), pages 621-639, November.
- Bennett T. McCallum, "undated". "Role of the minimal state variable criterion in rational expectations models," GSIA Working Papers 1999-13, Carnegie Mellon University, Tepper School of Business.
- McCallum, Bennett T., 1981.
"Price level determinacy with an interest rate policy rule and rational expectations,"
Journal of Monetary Economics, Elsevier, vol. 8(3), pages 319-329.
- Bennett T. McCallum, 1980. "Price Level Determinacy with an Interest Rate Policy Rule and Rational Expectations," NBER Working Papers 0559, National Bureau of Economic Research, Inc.
- Blanchard, Olivier Jean & Kahn, Charles M, 1980. "The Solution of Linear Difference Models under Rational Expectations," Econometrica, Econometric Society, vol. 48(5), pages 1305-1311, July.
- Dittmar, Robert D. & Gavin, William T., 2005.
"Inflation-targeting, price-path targeting and indeterminacy,"
Economics Letters, Elsevier, vol. 88(3), pages 336-342, September.
- Robert Dittmar & William T. Gavin, 2004. "Inflation-targeting, price-path targeting and indeterminacy," Working Papers 2004-007, Federal Reserve Bank of St. Louis.
- Carlstrom, Charles T. & Fuerst, Timothy S., 2001.
"Timing and real indeterminacy in monetary models,"
Journal of Monetary Economics, Elsevier, vol. 47(2), pages 285-298, April.
- Charles T. Carlstrom & Timothy S. Fuerst, 2001. "Timing and real indeterminacy in monetary models," Working Papers (Old Series) 9910R, Federal Reserve Bank of Cleveland.
- Ovidiu L. Calin & Yu Chen & Thomas F. Cosimano & Alex A. Himonas, 2005. "Solving Asset Pricing Models when the Price-Dividend Function Is Analytic," Econometrica, Econometric Society, vol. 73(3), pages 961-982, May.
- Sargent, Thomas J & Wallace, Neil, 1975. ""Rational" Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule," Journal of Political Economy, University of Chicago Press, vol. 83(2), pages 241-254, April.
- Lucas, Robert E, Jr, 1978. "Asset Prices in an Exchange Economy," Econometrica, Econometric Society, vol. 46(6), pages 1429-1445, November.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Eagle, David, 2006. "The Eventual Failure and Price Indeterminacy of Inflation Targeting," MPRA Paper 1240, University Library of Munich, Germany, revised 13 Dec 2006.
- Norman, Thomas W.L., 2020. "Market selection with an endogenous state," Journal of Mathematical Economics, Elsevier, vol. 91(C), pages 51-59.
- Loisel, Olivier, 2009. "Bubble-free policy feedback rules," Journal of Economic Theory, Elsevier, vol. 144(4), pages 1521-1559, July.
- McCallum, Bennett T., 2001.
"Indeterminacy, bubbles, and the fiscal theory of price level determination,"
Journal of Monetary Economics, Elsevier, vol. 47(1), pages 19-30, February.
- Bennett T. McCallum, "undated". "Indeterminacy, Bubbles, and the Fiscal Theory of Price Level Determination," GSIA Working Papers 1998-19, Carnegie Mellon University, Tepper School of Business.
- Bennett T. McCallum, 1998. "Indeterminacy, Bubbles, and the Fiscal Theory of Price Level Determination," NBER Working Papers 6456, National Bureau of Economic Research, Inc.
- d'Albis, Hippolyte & Augeraud-Véron, Emmanuelle & Hupkes, Hermen Jan, 2014.
"Bounded interest rate feedback rules in continuous-time,"
Journal of Economic Dynamics and Control, Elsevier, vol. 39(C), pages 227-236.
- d'Albis, Hippolyte & Augeraud-Véron, Emmanuelle & Hupkes, Hermen Jan, 2013. "Bounded Interest Rate Feedback Rules in Continuous-Time," MPRA Paper 45424, University Library of Munich, Germany.
- Hippolyte d'Albis & Emmanuelle Augeraud-Véron & Hermen Jan Hupkes, 2014. "Bounded interest rate feedback rules in continuous-time," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01015388, HAL.
- Hippolyte d'Albis & Emmanuelle Augeraud-Véron & Hermen Jan Hupkes, 2014. "Bounded interest rate feedback rules in continuous-time," Post-Print hal-01015388, HAL.
- Mr. Roger Farmer & Pawel Zabczyk, 2019. "A Requiem for the Fiscal Theory of the Price Level," IMF Working Papers 2019/219, International Monetary Fund.
- Ludger Linnemann, 2004. "Tax Base and Crowding‐in Effects of Balanced Budget Fiscal Policy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(2), pages 273-297, June.
- Lim, G.C. & McNelis, Paul D., 2008. "Computational Macroeconomics for the Open Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262123061, December.
- Andreas Schabert, 2005.
"Money Supply and the Implementation of Interest Rate Targets,"
Tinbergen Institute Discussion Papers
05-059/2, Tinbergen Institute.
- Schabert, Andreas, 2005. "Money supply and the implementation of interest rate targets," Working Paper Series 483, European Central Bank.
- Schabert, Andreas, 2005. "Money Supply and the Implementation of Interest Rate Targets," CEPR Discussion Papers 5094, C.E.P.R. Discussion Papers.
- Michael Woodford, 1999.
"Optimal Monetary Policy Inertia,"
Manchester School, University of Manchester, vol. 67(s1), pages 1-35.
- Michael Woodford, 1999. "Optimal monetary policy inertia," Proceedings, Federal Reserve Bank of San Francisco.
- Woodford, M., 1999. "Optimal Monetary Policy Inertia.," Papers 666, Stockholm - International Economic Studies.
- Woodford, Michael, 2000. "Optimal Monetary Policy Inertia," Seminar Papers 666, Stockholm University, Institute for International Economic Studies.
- Michael Woodford, 1999. "Optimal Monetary Policy Inertia," NBER Working Papers 7261, National Bureau of Economic Research, Inc.
- Woodford, Michael, 1999. "Optimal monetary policy inertia," CFS Working Paper Series 1999/09, Center for Financial Studies (CFS).
- Bernardino Adão & Pedro Teles, 2004.
"Monetary Policy with State Contingent Interest Rates,"
Working Papers
w200418, Banco de Portugal, Economics and Research Department.
- Pedro Teles & Isabel Correia & Bernardino Adão, 2009. "Monetary Policy with State Contingent Interest Rates," 2009 Meeting Papers 960, Society for Economic Dynamics.
- Bernardino Adão & Isabel Correia & Pedro Teles, 2004. "Monetary policy with state contingent interest rates," Working Paper Series WP-04-26, Federal Reserve Bank of Chicago.
- Pedro Teles & Bernardino Adao & Isabel Correia, 2004. "Monetary Policy with State Contingent Interest Rates," 2004 Meeting Papers 813, Society for Economic Dynamics.
- Adão, Bernardino & Correia, Isabel & Teles, Pedro, 2014.
"Short and long interest rate targets,"
Journal of Monetary Economics, Elsevier, vol. 66(C), pages 95-107.
- Correia, Isabel & Teles, Pedro & Adão, Bernardino, 2010. "Short and Long Interest Rate Targets," CEPR Discussion Papers 7935, C.E.P.R. Discussion Papers.
- Bernardino Adão & Pedro Teles, 2010. "Short and Long Interest Rate Targets," Working Papers w201015, Banco de Portugal, Economics and Research Department.
- Pedro Teles & Isabel Correia & Bernardino Adao, 2012. "Short and Long Interest Rate Targets," 2012 Meeting Papers 452, Society for Economic Dynamics.
- Bernardino Adão & Isabel Correia & Pedro Teles, 2010. "Short and long interest rate targets," Working Papers 680, Federal Reserve Bank of Minneapolis.
- Borovička, Jaroslav & Stachurski, John, 2021.
"Stability of equilibrium asset pricing models: A necessary and sufficient condition,"
Journal of Economic Theory, Elsevier, vol. 193(C).
- Jaroslav Borovicka & John Stachurski, 2019. "Stability of Equilibrium Asset Pricing Models: A Necessary and Sufficient Condition," Papers 1910.00778, arXiv.org, revised Feb 2021.
- Joseph E. Gagnon & Dale W. Henderson, 1990.
"Nominal interest rate pegging under alternative expectations hypotheses,"
Proceedings, Board of Governors of the Federal Reserve System (U.S.), pages 438-473.
- Joseph E. Gagnon & Dale W. Henderson, 1988. "Nominal interest rate pegging under alternative expectations hypotheses," International Finance Discussion Papers 336, Board of Governors of the Federal Reserve System (U.S.).
- Roger E.A. Farmer & Pawel Zabczyk, 2019.
"Monetary and Fiscal Policy When People Have Finite Lives,"
NBER Working Papers
25445, National Bureau of Economic Research, Inc.
- Farmer, Roger & Zabczyk, Pawel, 2022. "Monetary and Fiscal Policy when People have Finite Lives," CEPR Discussion Papers 13432, C.E.P.R. Discussion Papers.
- Bernardino Adão & Isabel Correia & Pedro Teles, 2004.
"Monetary policy with single instrument feedback rules,"
Working Paper Series
WP-04-30, Federal Reserve Bank of Chicago.
- Correia, Isabel & Teles, Pedro & Adão, Bernardino, 2005. "Monetary Policy with Single Instrument Feedback Rules," CEPR Discussion Papers 4948, C.E.P.R. Discussion Papers.
- Pedro Teles & Isabel Correia & Bernardino Adao, 2007. "Monetary Policy with Single Instrument Feedback Rules," 2007 Meeting Papers 622, Society for Economic Dynamics.
- Bernardino Adão & Pedro Teles, 2004. "Monetary Policy with Single Instrument Feedback Rules," Working Papers w200419, Banco de Portugal, Economics and Research Department.
- John H. Cochrane, 2011.
"Determinacy and Identification with Taylor Rules,"
Journal of Political Economy, University of Chicago Press, vol. 119(3), pages 565-615.
- John H. Cochrane, 2007. "Determinacy and Identification with Taylor Rules," NBER Working Papers 13410, National Bureau of Economic Research, Inc.
- John H. Cochrane, 2007. "Determinacy and Identification with Taylor Rules," NBER Working Papers 13409, National Bureau of Economic Research, Inc.
- Jensen Henrik, 2011.
"Estimated Interest Rate Rules: Do they Determine Determinacy Properties?,"
The B.E. Journal of Macroeconomics, De Gruyter, vol. 11(1), pages 1-22, May.
- Jensen, Henrik, 2009. "Estimated Interest Rate Rules: Do they Determine Determinacy Properties?," CEPR Discussion Papers 7555, C.E.P.R. Discussion Papers.
- Canzoneri, Matthew B. & Diba, Behzad T., 2005. "Interest rate rules and price determinacy: The role of transactions services of bonds," Journal of Monetary Economics, Elsevier, vol. 52(2), pages 329-343, March.
- Andreas Schabert, "undated". "On the Equivalence of Money Growth and Interest Rate Policy," Working Papers 2003_6, Business School - Economics, University of Glasgow, revised Apr 2003.
More about this item
Keywords
non-explosive criterion; price determinacy; inflation targeting; stability criterion; saddle-point criterion; infinite-horizon economies; pegging the interest rate;All these keywords.
JEL classification:
- E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
NEP fields
This paper has been announced in the following NEP Reports:- NEP-MAC-2007-01-28 (Macroeconomics)
- NEP-MON-2007-01-28 (Monetary Economics)
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:1538. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.