BESS at MNB May 28, 2009 Pedro Teles: Unique Monetary Equilibria with Interest Rate Rules (joint with Bernardino Adao and Isabel Correia)

The seminar will be held in the Visitor Centre at 3:15 pm on Thursday

Pedro Teles (Universidade Catolica Portguesa and Banco de Portugal)

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.

paper

Vissza a tetejére

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