Constant interest rate projections without the curse of indeterminacy: A note

Jordi Galí

International Journal of Economic Theory, 2009, vol. 5, issue 1, 61-68

Abstract: Constant interest rate projections are often criticized on the grounds that they are inconsistent with the existence of a unique equilibrium in a variety of forward‐looking models. This note shows how to construct constant interest rate projections that are not subject to that criticism, using a standard New Keynesian model as a reference framework.

Date: 2009
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https://doi.org/10.1111/j.1742-7363.2008.00103.x

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Persistent link: https://EconPapers.repec.org/RePEc:bla:ijethy:v:5:y:2009:i:1:p:61-68

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