DP4948 Monetary Policy with Single Instrument Feedback Rules
|Author(s):||Bernardino Adão, Isabel Correia, Pedro Teles|
|Publication Date:||March 2005|
|Keyword(s):||interest rate rules, monetary policy, unique equilibrium|
|JEL(s):||E31, E40, E52, E58, E62, E63|
|Programme Areas:||International Macroeconomics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=4948|
We consider standard cash-in-advance monetary models and show that there are interest rate or money supply rules such that equilibria are unique. The existence of these single instrument rules depends on whether the economy has an infinite horizon or an arbitrarily large but finite horizon.