Interest rate rules and macroeconomic stabilization

descriptionPublicationkeyboard_double_arrow_right Article , Preprint 01 Jan 2006 Australia French Publisher:CAIRNJournal:Recherches économiques de Louvain, volume 72, page 195 (issn: 0770-4518, eissn: 1782-1495,

Copyright policy )

Authors: Weder, M.;

doi: 10.3917/rel.722.0195 , 10.1017/s077045180004464x

handle: 2440/35182

Interest rate rules and macroeconomic stabilization

- Summary
- Subjects
- Metrics

Abstract

SummaryHigh degrees of relative risk aversion induce indeterminacy in cash-in-advance economies. This paper finds that Taylor-style policies can preempt such sunspot equilibria. Specific policy recommendations depend on the fundamentals of the economy, i.e. the empirically true value of coefficient of relative risk aversion.

Country

Australia

Related Organizations

Keywords

Cash-in-advance economies, Taylor rules, sunspot equilibria, cash-in-advance economies, Taylor rules, sunspot equilibria, jel: jel:E32, jel: jel:E52

Impact byBIP!

	selected citations These citations are derived from selected sources. This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).	5
	popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.	Average
	influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).	Average
	impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.	Average