Discussion Paper Details

Please find the details for DP7555 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Estimated Interest Rate Rules: Do they Determine Determinacy Properties?

Author(s): Henrik Jensen

Publication Date: November 2009

Keyword(s): Equilibrium determinacy, Estimated Taylor rules, Interest rate rules, Monetary policy and Rules vs. discretion.

Programme Area(s): International Macroeconomics

Abstract: No. I demonstrate that econometric estimations of nominal interest rate rules may tell little, if anything, about an economy's determinacy properties. In particular, correct inference about the interest-rate response to inflation provides no information about determinacy. Instead, it could reveal whether optimal monetary policymaking is performed under discretion or commitment.

For full details and related downloads, please visit:

Bibliographic Reference

Jensen, H. 2009. 'Estimated Interest Rate Rules: Do they Determine Determinacy Properties?'. London, Centre for Economic Policy Research.