indeterminacy arises in one country but determinacy in the other, and show that indeterminacy could be eliminated when trade takes …

The rational expectations equilibrium of a small open economy can be subject to indeterminacy if foreign monetary … policy does not satisfy the Taylor principle. We study the implications of foreign-induced indeterminacy for the conduct of … monetary policy in a small open economy. In the canonical sticky-price small open economy model, we find that indeterminacy …

indeterminacy or instability in the other subspace. In the latter subspace, a parameter change possibly leads to a Hopf bifurcation …

We propose a method for solving and estimating linear rational expectations models that exhibit indeterminacy and we …

generation EBC1 models to second generation EBC2 models. I argue that EBC1 models, which display dynamic indeterminacy, are part … steady-state indeterminacy, are a more radical departure from the classical Real Business Cycle model; they represent a …

) indeterminacy. Hence, expectations matter for resulting equilibrium dynamics. Despite its simplicity, the model creates a rich set … fundamentals in models with indeterminacy. The model is applied to replicate two striking empirical characteristics of …