Backward-Looking Interest-Rate Rules, Interest-Rate Smoothing, and Macroeconomic Instability
نویسندگان
چکیده
منابع مشابه
Backward - Looking Interest - Rate Rules , Interest Rate Smoothing , and Macroeconomic Instability ∗
The existing literature on the stabilizing properties of interest-rate feedback rules has stressed the perils of linking interest rates to forecasts of future inflation. Such rules have been found to give rise to aggregate fluctuations due to self-fulfilling expectations. In response to this concern, a growing literature has focused on the stabilizing properties of interest-rate rules whereby t...
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When real balances have even a very small productive role, contemporaneous and forwardlooking Taylor-Wicksell rules can induce ubiquitous multiplicities of equilibria and lead to consequences that are unintended by policymakers. This raises the issue of whether it is possible to anchor and stabilize the economy through backward-looking rules. We show that the standard uniqueness results that ar...
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To be added.] ∗This is a revision of the text delivered by the second author as the Jacob Marschak Lecture at the 2001 Far Eastern Meeting of the Econometric Society, Kobe, Japan, July 21, 2001. We thank Julio Rotemberg and Lars Svensson for helpful discussions, and the National Science Foundation, through a grant to the NBER, for research support. Views expressed are those of the authors and d...
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ژورنال
عنوان ژورنال: Journal of Money, Credit, and Banking
سال: 2003
ISSN: 1538-4616
DOI: 10.1353/mcb.2004.0020