Benavie, Arthur; Froyen, Richard T - In: Oxford Economic Papers 40 (1988) 4, pp. 634-45
Possible indeterminacy of the price level, when the nominal interest rate is arbitrarily set at some level, is of interest in monetary theory. This paper reexamines this issue within a stochastic macromodel, considering both a "pure" interest rate peg and an interest rate peg as the limiting...