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Working Paper Series F-39 Equilibrium Indeterminacy under Forward-Looking Interest Rate Rules
| Content Provider | Semantic Scholar |
|---|---|
| Author | Nakagawa, Ryuichi |
| Copyright Year | 2009 |
| Abstract | Why is the rational expectations equilibrium locally indeterminate if the central bank raises the nominal interest rate too actively in response to a rise in expected inflation? This is because although the bank succeeds in stabilizing the expectations of the future economy, it allows the current economy to arbitrarily fluctuate. This indeterminacy expands in dimension as the forecast horizon of the rule becomes long. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://www2.ipcku.kansai-u.ac.jp/~ryu-naka/090615Kandai_WP.pdf |
| Language | English |
| Access Restriction | Open |
| Subject Keyword | Indeterminacy in concurrent computation Kind of quantity - Equilibrium Projections and Predictions Rule (guideline) |
| Content Type | Text |
| Resource Type | Article |
