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Persistent link: https://www.econbiz.de/10012093806
We show that if policymakers compute the optimal unconstrained interest-rate rule within a Taylor-type class, they may be led to rules that generate indeterminacy and/or instability under learning. This problem is compounded by uncertainty about structural parameters since an optimal rule that...
Persistent link: https://www.econbiz.de/10005521985