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Interest Rate Rules for Fixed Exchange Rate Regimes Author info | Abstract | Publisher info | Download info | Related research | Statistics Gianluca Benigno (University of California, Berkeley)
Pierpaolo Benigno (Princeton University)
Fabio Ghironi () (Boston College)
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This paper shows that properly designed interest rate rules can be consistent with maintaining exchange rate stability. It sheds light on the relation between interest rate rules, exchange-rate regimes, and determinacy of the rational expectations equilibrium in a modern macroeconomic framework.
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Paper provided by Boston College Department of Economics in its series Boston College Working Papers in Economics with number
468.
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Length: 11 pages
Date of creation: 13 Mar 2000Date of revision:
13 Oct 2003Handle: RePEc:boc:bocoec:468Contact details of provider: Postal: Boston College, 140 Commonwealth Avenue, Chestnut Hill MA 02467 USA Phone: 617-552-3670 Fax: +1-617-552-2308 Email: Web page: http://fmwww.bc.edu/EC/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Christopher F Baum).
Keywords: Fixed exchange rates ; Interest rate rules ; Other versions of this item:
Find related papers by JEL classification: F31 - International Economics - - International Finance - - - Foreign Exchange F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Sargent, Thomas J & Wallace, Neil, 1975.
""Rational" Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule ,"
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Other versions: Kareken, John & Wallace, Neil, 1981.
"On the Indeterminacy of Equilibrium Exchange Rates ,"
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Krugman, Paul, 1979.
"A Model of Balance-of-Payments Crises ,"
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Fabio Ghironi, 2000.
"Alternative Monetary Rules for a Small Open Economy: The Case of Canada ,"
Boston College Working Papers in Economics
466, Boston College Department of Economics, revised 30 Oct 2000.
[Downloadable!]
Efrem Castelnuovo, 2004.
"Regime Shifts and the Stability of Backward Looking Phillips Curves in Open Economies ,"
Computing in Economics and Finance 2004
49, Society for Computational Economics.
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Other versions:
Efrem Castelnuovo, 2006.
"Regime Shifts and the Stability of Backward Looking Phillips Curves in Open Economies ,"
"Marco Fanno" Working Papers
0015, Dipartimento di Scienze Economiche "Marco Fanno".
[Downloadable!] Efrem Castelnuovo, 2005.
"Regime Shifts and the Stability of Backward Looking Phillips Curves in Open Economies ,"
Macroeconomics
0506017, EconWPA.
[Downloadable!] Castelnuovo, Efrem, 2008.
"Regime shifts and the stability of backward-looking Phillips curves in open economies ,"
Journal of International Money and Finance ,
Elsevier, vol. 27(1), pages 40-53, February.
[Downloadable!] (restricted) Melecky, Ales & Melecky, Martin, 2008.
"From Inflation to Exchange Rate Targeting: Estimating the Stabilization Effects ,"
MPRA Paper
10844, University Library of Munich, Germany.
[Downloadable!]
Giancarlo Corsetti & Paolo Pesenti, 2001.
"International Dimensions of Optimal Monetary Policy ,"
NBER Working Papers
8230, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Giancarlo Corsetti & Paolo Pesenti, 2001.
"International dimensions of optimal monetary policy ,"
Staff Reports
124, Federal Reserve Bank of New York.
[Downloadable!] Corsetti, Giancarlo & Pesenti, Paolo, 2002.
"International Dimensions of Optimal Monetary Policy ,"
CEPR Discussion Papers
3349, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Corsetti, Giancarlo & Pesenti, Paolo, 2005.
"International dimensions of optimal monetary policy ,"
Journal of Monetary Economics ,
Elsevier, vol. 52(2), pages 281-305, March.
[Downloadable!] (restricted) Mirco Soffritti & Francesco Zanetti, 2008.
"The advantage of tying one's hands: revisitedThis paper represents the views and analysis of the author and should not be thought to represent
,"
International Journal of Finance & Economics ,
John Wiley & Sons, Ltd., vol. 13(2), pages 135-149.
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Sabina Pogorelec, 2006.
"Fiscal and monetary policy in the enlarged European Union ,"
Working Paper Series
655, European Central Bank.
[Downloadable!]
Ester Faia, 2001.
"Stabilization policy in a two country model and the role of financial frictions ,"
Working Paper Series
056, European Central Bank.
[Downloadable!]
Karlygash Kuralbayeva, 2007.
"Inflation persistence: Implications for a design of monetary policy in a small open economy subject to external shocks ,"
CEIS Research Paper
93, Tor Vergata University, CEIS.
[Downloadable!]
Melecky, Martin & Najdov, Evgenij, 2008.
"Comparing constraints to economic stabilization in Macedonia and Slovakia: macro estimates with micro narratives ,"
Policy Research Working Paper Series
4691, The World Bank.
[Downloadable!]
Other versions: Borek Vasicek, 2009.
"The monetary policy rules and the inflation process in open emerging economies: evidence for 12 new EU members ,"
Working Papers
wpdea0903, Department of Applied Economics at Universitat Autonoma of Barcelona.
[Downloadable!]
Luis-Felipe Zanna, 2003.
"Interest rate rules and multiple equilibria in the small open economy ,"
International Finance Discussion Papers
785, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!]
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