Discretionary Policy and Multiple Equilibria in LQ RE Models

Tatiana Kirsanova and Andrew Blake

No 789, 2010 Meeting Papers from Society for Economic Dynamics

Abstract: We study discretionary equilibria in dynamic linear-quadratic rational expectations models. In contrast to the assumptions that pervade this literature we show that these models do have multiple equilibria in some situations. We demonstrate the existence of multiple discretionary equilibria by example. We investigate general properties of discretionary equilibria.

Date: 2010
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Related works:
Journal Article: Discretionary Policy and Multiple Equilibria in LQ RE Models (2012)
Working Paper: Discretionary Policy and Multiple Equilibria in LQ RE Models (2010)
Working Paper: Discretionary Policy and Multiple Equilibria in LQ RE Models (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed010:789

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