The seminar will be held in tha Visitor Centre at 3 pm.
Pedro Teles
(Bank of Portugal)
CANCELLED!
Abstract
In contrast to previous literature, we show that there are interest rate rules that implement unique global equilibria in standard monetary models. This is a contribution to a literature that either concentrates on conditions for local determinacy, or criticizes that approach showing that local determinacy might be associated with global indeterminacy. The interest rate rules we propose are price level targeting rules that respond to the forecasts of the future price level and future economic activity. Key words: Monetary policy; interest rate rules; price level targeting;
unique equilibrium.
JEL classi.cation: E31; E40; E52; E58.