We establish conditions under which indeterminacy can occur in a small open economy business cycle model with … endogenous labor supply. Indeterminacy requires small externalities in technologies with social constant returns to scale …

parameters of a simple forward-looking monetary rule. We solve the model under indeterminacy via the procedure introduced by … under indeterminacy is a mirror image of what it is under determinacy: both inflation persistence and the volatility of its … reduced-form innovations, for example, are increasing in the coefficient on inflation under indeterminacy, decreasing under …

This paper quantitatively investigates equilibrium indeterminacy due to economies of scale (ES) in financial … calibrated to match US data: (i) indeterminacy arises for small degrees of ES; (ii) sunspot shocks qualitatively resemble …

indeterminacy and to countercyclical behavior of young-age consumption. The policy rule which minimizes inflation volatility can be … money growth targeting. Indeterminacy is more likely under an active forwardlooking rule than under the corresponding …

inclusion of investment has dramatic, but contrasting, effects on the range of values giving rise to indeterminacy. First, it …