INTEREST RATE PEGS, WEALTH EFFECTS AND PRICE LEVEL DETERMINACY

This paper analyses the issue of price level determinacy in an optimizing general equilibrium model with overlapping generations. It is shown that under a pure interest rate peg wealth effects rule out nominal indeterminacy but give rise to multiple equilibria. Copyright © 2006 The Authors; Journal compilation © 2006 Blackwell Publishing Ltd.

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Year of publication:	2006
Authors:	Annicchiarico, Barbara ; Marini, Giancarlo
Published in:	Metroeconomica. - Wiley Blackwell, ISSN 0026-1386. - Vol. 57.2006, 4, p. 521-535
Publisher:	Wiley Blackwell

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005140370