Interest Rate Pegs, Wealth Effects and Price Level Determinacy

Barbara Annicchiarico (barbara.annicchiarico@uniroma3.it) and Giancarlo Marini

CEIS Research Paper from Tor Vergata University, CEIS

Abstract: This paper analyses the issue of price level determinacy in an optimising general equilibrium model with overlapping generations. It is shown that under a pure interest rate peg, wealth effects rule out nominal indeterminacy but give rise to multiple equilibria.

Keywords: Price Level Determination; Interest Rate Pegging; Multiple Equilibria (search for similar items in EconPapers)
JEL-codes: E31 E63 (search for similar items in EconPapers)
Pages: 21
Date: 2005-02-04
New Economics Papers: this item is included in nep-dge and nep-mac
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https://ceistorvergata.it/RePEc/rpaper/No-65-Annicchiarico-Marini.pdf (application/pdf)

Related works:
Journal Article: INTEREST RATE PEGS, WEALTH EFFECTS AND PRICE LEVEL DETERMINACY (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:rtv:ceisrp:65

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