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Monetary policy and external finance: interpreting the behavior of financial flows and interest rate spreads

Kuttner, Kenneth N. - Federal Reserve Bank of Chicago - 1992

Persistent link: https://www.econbiz.de/10005410906

Taylor rules in a limited participation model

Christiano, Lawrence J.; Gust, Christopher J. - Federal Reserve Bank of Chicago - 1999

outcomes such as the burst of inflation observed in the 1970s. Based on our analysis, we argue for a rule which: (i) raises the … nominal interest rate more than one-for-one with a rise in inflation; and (ii) does not change the interest rate in response …

Persistent link: https://www.econbiz.de/10005419947

Monetary policy with state contingent interest rates

Adão, Bernardino; Correia, Isabel; Teles, Pedro - Federal Reserve Bank of Chicago - 2004

What instruments of monetary policy must be used in order to implement a unique equilibrium? This paper revisits the issues addressed by Sargent and Wallace (1975) on the multiplicity of equilibria when policy is conducted with interest rate rules. We show that the appropriate interest rate...

Persistent link: https://www.econbiz.de/10005520034

Expectation traps and monetary policy

Albanesi, Stefania (contributor); … - 2002 - [Elektronische Ressource]

"Why is inflation persistently high in some periods and low in others? The reason may be absence of commitment in … trigger strategies. In these traps, expectations of high or low inflation lead the public to take defensive actions, which … inflation rate is low on average. This analysis suggests that institutions which promote commitment can prevent high inflation …

Persistent link: https://www.econbiz.de/10001676637