Interest Rate Rules for Fixed Exchange Rate Regimes

Gianluca D. Benigno, Pierpaolo Benigno and Fabio Ghironi ()

No 468, Boston College Working Papers in Economics from Boston College Department of Economics

Abstract: This paper shows that properly designed interest rate rules can be consistent with maintaining exchange rate stability. It sheds light on the relation between interest rate rules, exchange-rate regimes, and determinacy of the rational expectations equilibrium in a modern macroeconomic framework.

Keywords: Fixed exchange rates; Interest rate rules (search for similar items in EconPapers)
JEL-codes: F31 F33 F41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mon
Date: Written 2000-03-13
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Related works:
Journal Article: Interest rate rules for fixed exchange rate regimes (2007)
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