Monetary Policy with Single Instrument Feedback Rules
21 Pages Posted: 27 Jul 2005
Date Written: March 2005
Abstract
We consider standard cash-in-advance monetary models and show that there are interest rate or money supply rules such that equilibria are unique. The existence of these single instrument rules depends on whether the economy has an infinite horizon or an arbitrarily large but finite horizon.
Keywords: Monetary policy, interest rate rules, unique equilibrium
JEL Classification: E31, E40, E52, E58, E62, E63
Suggested Citation: Suggested Citation
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