Teles, Pedro; Adao, Bernardino; Correia, Isabel - Society for Economic Dynamics - SED - 2004
What instruments of monetary policy must be used in order to implement a unique equilibrium? This paper revisits the issues addressed by Poole (1970) and Sargent and Wallace (1975) on the multiplicity of equilibria when policy is conducted with either interest rate or money supply rules. We show...