interest rates increase aggregate demand, the Taylor principle leads to indeterminacy, and passive policy ensures a unique …

dynamics of the model are reduced to a representation in the output gap and domestic inflation, and depend on the degree of …

We propose a new interest rate rule that implements the optimal equilibrium and eliminates all indeterminacy in a … nominal interest rates for a length of time that increases in proportion to how much past inflation has deviated - either … key principle is to respond strongly enough to deviations of past inflation from optimal levels by sufficiently increasing …

postwar US macroeconomic data can be explained as the outcome of passive monetary policy, indeterminacy, and sunspot … allowing the parameters to fall both in the determinacy and indeterminacy regions. The estimates reveal large shares of agents … results confirm that macroeconomic data in the early windows are better explained by indeterminacy, while determinacy is …

rely on the Neo-Fisherian mechanism of inducing an increase in inflation by first increasing interest rates. …

We propose a new interest rate rule that implements the optimal equilibrium and eliminates all indeterminacy in a … nominal interest rates for a length of time that increases in proportion to how much past inflation has deviated - either … key principle is to respond strongly enough to deviations of past inflation from optimal levels by sufficiently increasing …

rely on the Neo-Fisherian mechanism of inducing an increase in inflation by first increasing interest rates. …

postwar US macroeconomic data can be explained as the outcome of passive monetary policy, indeterminacy, and sunspot … windows and allowing the parameters to fall both in the determinacy and indeterminacy regions. The estimates reveal large … the sample. The results confirm that macroeconomic data in the early windows are better explained by indeterminacy, while …