Interest Rate Pegs, Wealth Effects and Price Level Determinacy
University of Rome II - Department of Economics and Law
University of Rome II - Faculty of Economics
Metroeconomica, Vol. 57, No. 4, pp. 521-535, November 2006
This paper analyses the issue of price level determinacy in an optimizing general equilibrium model with overlapping generations. It is shown that under a pure interest rate peg wealth effects rule out nominal indeterminacy but give rise to multiple equilibria.
Number of Pages in PDF File: 15Accepted Paper Series
Date posted: November 13, 2006
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