Interest Rate Targeting in a Small Open Economy : The Predetermined Exchange Rates Case /
An important hurdle in analyzing interest rate targeting is that standard models usually lead to price level or inflation rate indeterminacy. This paper develops a simple framework in which such problems do not arise because the bonds whose interest rate is controlled provide liquidity services. Thi...
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Format: | Journal |
Language: | English |
Published: |
Washington, D.C. :
International Monetary Fund,
1990.
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Series: | IMF Working Papers; Working Paper ;
No. 1990/021 |
Online Access: | Full text available on IMF |