Abstract
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 language | English (US) |
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Pages (from-to) | 1-3 |
Number of pages | 3 |
Journal | Journal of Economic Theory |
Volume | 123 |
Issue number | 1 SPEC. ISS. |
DOIs | |
State | Published - Jul 2005 |
Keywords
- Capital accumulation
- Indeterminacy
- Multiple equilibria
- Taylor rules
ASJC Scopus subject areas
- Economics and Econometrics