Monetary Policy and Multiple Equilibria

Jess Benhabib, Stephanie Schmitt-Grohe and Martín Uribe ()

Working Papers from C.V. Starr Center for Applied Economics, New York University

Abstract: In this paper, we characterize conditions under which interest rate feedback rules wherby the nominal interest rate is set as an increasing function of the inflation rate generate multiple equilibria. We show that these conditions depend not only on the fiscal regime (as emphasized in the fiscal theory of the price level) but also on the way in which money is assumed to enter preferences and technology. We analyze this issue in flexible and sticky price environments.

Keywords: MONETARY POLICY; PRICES; INTEREST RATE (search for similar items in EconPapers)
JEL-codes: E31 E52 E63 (search for similar items in EconPapers)
Pages: 19 pages
Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (22)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Monetary Policy and Multiple Equilibria (2001)
Working Paper: Monetary Policy and Multiple Equilibria (1999)
Working Paper: Monetary Policy and Multiple Equilibria (1999)
Working Paper: Monetary policy and multiple equilibria (1998)
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:cvs:starer:98-02

Ordering information: This working paper can be ordered from
C.V. Starr Center, Department of Economics, New York University, 19 W. 4th Street, 6th Floor, New York, NY 10012

Access Statistics for this paper

More papers in Working Papers from C.V. Starr Center for Applied Economics, New York University C.V. Starr Center, Department of Economics, New York University, 19 W. 4th Street, 6th Floor, New York, NY 10012. Contact information at EDIRC.
Bibliographic data for series maintained by Anne Stubing ( this e-mail address is bad, please contact ).