Interest Rate Pegs, Wealth Effects And Price Level Determinacy
This paper analyses the issue of price level determinacy in an optimizing general equilibrium model with overlapping generations. It is shown that under a pure interest rate peg wealth effects rule out nominal indeterminacy but give rise to multiple equilibria. Copyright © 2006 The Authors; Journal compilation © 2006 Blackwell Publishing Ltd.
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Volume (Year): 57 (2006)
Issue (Month): 4 (November)
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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.:
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