Generalized Taylor Rule and Determinacy of Growth Equilibrium
Kazuo Mino and
Seiya Fujisaki ()
Additional contact information
Seiya Fujisaki: Graduate School of Economics
Economics Bulletin, 2007, vol. 5, issue 11, 1-7
Abstract:
This paper re-examines equilibrium determinacy under the interest-rate control rules in a simple model of endogenous growth. We use a standard money-in-the-utility formulation with fixed labor supply and an Ak technology under which the balanced-growth path is unique and money is superneutral in the long run. We show that even in this environment the interest-rate feedback rule a la Taylor may produce indeterminacy of equilibrium if the monetary authority adjusts the nominal interest rate in response to the growth rate of real income as well as to the rate of inflation.
Keywords: determinacy; of; equilibrium (search for similar items in EconPapers)
JEL-codes: E5 O4 (search for similar items in EconPapers)
Date: 2007-07-24
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)
Downloads: (external link)
http://www.accessecon.com/pubs/EB/2007/Volume5/EB-07E50003A.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-07e50003
Access Statistics for this article
More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().