The Taylor principle and global determinacy in a non Ricardian world

Jean-Pascal Benassy and Michel Guillard ()

Working Papers from HAL

Abstract: The Taylor principle is quite usually considered as a central condition for price determinacy. Recently, however, this has been questioned on several grounds, notably because (i) this condition is a condition for local determinacy, not global determinacy (ii) it has been derived in "Ricardian" economies, and it appears that going to a non-Ricardian framework makes a very big difference for the determinacy conditions. In this paper we scrutinize the two issues together, and we find that for non-Ricardian equilibria the Taylor principle is replaced by another "financial dominance" criterion.

Keywords: Taylor principle; Taylor rules; global determinacy; price determinacy; non Ricardian economies; non Ricardian equilibria; Principe de Taylor; règles de Taylor; détermination globale; équilibres non Ricardiens; économies non Ricardiennes (search for similar items in EconPapers)
Date: 2005-12
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00590558v1
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://shs.hal.science/halshs-00590558v1/document (application/pdf)

Related works:
Working Paper: The Taylor Principle and Global Determinacy in a Non-Ricardian World (2005)
Working Paper: The Taylor principle and global determinacy in a non Ricardian world (2005)
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:hal:wpaper:halshs-00590558

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().