Interest Rate Rules, Endogenous Cycles, and Chaotic Dynamics in Open Economies /
We present an extensive analysis of the consequences for global equilibrium determinacy in flexible-price open economies of implementing active interest rate rules, id est, monetary rules where the nominal interest rate responds more than proportionally to inflation. We show that conditions under wh...
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| Formatua: | Aldizkaria |
| Hizkuntza: | English |
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Washington, D.C. :
International Monetary Fund,
2012.
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| Saila: | IMF Working Papers; Working Paper ;
No. 2012/121 |
| Sarrera elektronikoa: | Full text available on IMF |
| Gaia: | We present an extensive analysis of the consequences for global equilibrium determinacy in flexible-price open economies of implementing active interest rate rules, id est, monetary rules where the nominal interest rate responds more than proportionally to inflation. We show that conditions under which these rules generate aggregate instability by inducing liquidity traps, endogenous cycles, and chaotic dynamics depend on specific characteristics of open economies. In particular, rules that respond to expected future inflation are more prone to induce endogenous cyclical and chaotic dynamics the more open the economy to trade. |
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| Alearen deskribapena: | <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required |
| Deskribapen fisikoa: | 1 online resource (40 pages) |
| Formatua: | Mode of access: Internet |
| ISSN: | 1018-5941 |
| Sartu: | Electronic access restricted to authorized BRAC University faculty, staff and students |