Huang, Kevin X.D.; Meng, Qinglai; Xue, Jianpo - In: Journal of Economic Dynamics and Control 33 (2009) 2, pp. 409-430
We show that, with endogenous investment, virtually all monetary policy rules that set a nominal interest rate in response solely to expected future inflation induce real indeterminacy in models with (i) staggered prices, (ii) staggered prices and staggered wages, and (iii) staggered prices,...