conditions for indeterminacy that are easy to implement and we show that the necessary and sufficient condition for determinacy … indeterminacy in a passive regime may spill over to an active regime no matter how active the latter regime is. As a result, a …

remains indeterminacy indexed by an arbitrary probability measure over the set of states of the world. With an interest rate … policy, and only if the asset market is complete, indeterminacy is nominal: it affects prices, but not the allocation of … resources at equilibrium; with a money-supply policy, the indeterminacy is real. Portfolio policy sets the portfolio of assets …