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Monetary Policy and Multiple Equilibria Author info | Abstract | Publisher info | Download info | Related research | Statistics Benhabib, J.
Schmitt-Grohe, S.
Uribe, M.
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In this paper, we characterize conditions under which interest rate feedback rules wherby the nominal interest rate is set as an increasing function of the inflation rate generate multiple equilibria. We show that these conditions depend not only on the fiscal regime (as emphasized in the fiscal theory of the price level) but also on the way in which money is assumed to enter preferences and technology. We analyze this issue in flexible and sticky price environments.
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Paper provided by C.V. Starr Center for Applied Economics, New York University in its series Working Papers with number
98-02.
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Length: 19 pages
Date of creation: 1998Date of revision:
Handle: RePEc:cvs:starer:98-02Contact details of provider: Postal: C.V. Starr Center, Department of Economics, New York University, 269 Mercer Street 7th Floor, New York, NY 10003 Phone: (212) 998-8936 Fax: (212) 995-3932 Web page: http://www.nyu.edu/econ/cvstarr/index.html More information through EDIRC
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Keywords: MONETARY POLICY PRICES INTEREST RATE Other versions of this item:
Article Paper Benhabib, Jess & Schmitt-Grohé, Stephanie & Uribe, Martín, 1999.
"Monetary Policy and Multiple Equilibria ,"
CEPR Discussion Papers
2316, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Jess Benhabib & Stephanie Schmitt-Grohe & Martin Uribe, 1999.
"Monetary Policy and Multiple Equilibria ,"
Departmental Working Papers
199914, Rutgers University, Department of Economics.
Jess Benhabib & Stephanie Schmitt-Grohe & Martin Uribe, 1998.
"Monetary policy and multiple equilibria ,"
Finance and Economics Discussion Series
1998-29, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!] Find related papers by JEL classification: 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 E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization
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Benhabib, Jess & Schmitt-Grohé, Stephanie & Uribe, Martín, 2001.
"Avoiding Liquidity Traps ,"
CEPR Discussion Papers
2948, C.E.P.R. Discussion Papers.
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99-21, C.V. Starr Center for Applied Economics, New York University.
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"The Perils of Taylor Rules ,"
CEPR Discussion Papers
2314, C.E.P.R. Discussion Papers.
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Other versions:
Benhabib, Jess & Schmitt-Grohe, Stephanie & Uribe, Martin, 1998.
"The Perils of Taylor Rules ,"
Working Papers
98-37, C.V. Starr Center for Applied Economics, New York University.
[Downloadable!] Jess Benhabib & Stephanie Schmitt-Grohe & Martin Uribe, 1998.
"The perils of Taylor Rules ,"
Departmental Working Papers
199831, Rutgers University, Department of Economics.
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"The Perils of Taylor Rules ,"
Journal of Economic Theory ,
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