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"This paper summarizes recent developments in the theory and practice of monetary policy in a closed economy and … solution is evolving in the use of inflation targets"--Federal Reserve Bank of St. Louis web site …
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and a central bank that uses an interest rate rule to target inflation and/or the price level. We present analytical … results showing that, although inflation targeting often results in real indeterminacy, a price level target generally …
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This paper presents a general model of the determination of the interest rate and the exchange rate which is relevant for a small economy with any degree of capital mobility. The model is tested by using the quarterly data of Korea and Singapore. The emperical results show that in the Korean...
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interest. But economic theory is ambiguous when it comes to the effect of government budget deficits on the real rate of …
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