Introduction to monetary policy and capital accumulation

Jess Benhabib, Charles T. Carlstrom, Timothy S. Fuerst

    Research output: Contribution to journalArticlepeer-review


    The papers in this symposium address the issue of multiple equilibria that can be induced by monetary policy in models with capital accumulation. In particular they examine how the "Taylor Principle", under which interest rates respond more than proportionately to increases in inflation, can generate multiple equilibria. They also explore the design of policies to avoid the problem of multiple equilibria and indeterminacy.

    Original languageEnglish (US)
    Pages (from-to)1-3
    Number of pages3
    JournalJournal of Economic Theory
    Issue number1 SPEC. ISS.
    StatePublished - Jul 2005


    • Capital accumulation
    • Indeterminacy
    • Multiple equilibria
    • Taylor rules

    ASJC Scopus subject areas

    • Economics and Econometrics


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