Bache, Ida Wolden; Røislanda, Øistein; Torstensen, … - In: International Journal of Central Banking 7 (2011) 3, pp. 79-90
In a recent paper, Levine, McAdam, and Pearlman (2007) propose a new type of interest rate rule, which they denote a “Calvo-type” rule. The Calvo-type interest rate responds to the discounted sum of current and future rates of inflation. We show that a Calvo-type rule can be derived from a...