Interest Rate Rules for Fixed Exchange Rate Regimes

Gianluca 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)
Pages: 11 pages
Date: 2000-03-13, Revised 2003-10-13
New Economics Papers: this item is included in nep-mon
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Citations: View citations in EconPapers (25)

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Related works:
Journal Article: Interest rate rules for fixed exchange rate regimes (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:boc:bocoec:468

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