model may exhibit indeterminacy and sunspots fluctuations when income tax rates are determined by a balanced-budget rule …

find that active interest rate rules generate equilibrium uniqueness, but passive rules can lead to real indeterminacy …. Simulation shows that even in the presence of investment, passive rules are very likely to render indeterminacy. …

generate indeterminacy but it is also shown that this can be done without assuming a very elastic supply of labor. …

solely at the extensive margin, forecast-based policy that meets the Taylor principle is likely to induce indeterminacy and E … intensive margins, the strictly inflation-forecast targeting policy remains likely to induce indeterminacy, but it generates a …

A challenge to models of equilibrium indeterminacy based on increasing returns is that required increasing returns for … generating indeterminacy can be implausibly large and rise quickly with the relative risk aversion in labor. We show that … unsynchronized wage adjustment via a relative wage effect can both lower the required degree of increasing returns for indeterminacy …