Mao, Connie X; Zhang, Ning; Zhong, Rui - In: Review of Quantitative Finance and Accounting 21 (2003) 1, pp. 65-94
This paper studies the general behavior of the nominal and real term structures of interest rates in a general equilibrium framework. A central bank is introduced in the model as an agent facing a tradeoff between inflation and output and choosing a monetary policy variable. Prices and output...
