La indeterminación del nivel de precios cuando el banco central sigue una regla de tasa de interés

This article explains some solutions to the problem of Sargent-Wallace (1975) [S-W] on the price level when the central bank follows an interest rate rule. If the interest rate is previously set, the neoclassical IS/LM model is unable to solve the equilibrium price level. However, the artifice for its redemption also works in the S-W model with a deterministic rule. If the rule is stochastic then a similar problem unnoticed by Kerr- King (1996) emerges, requiring the assistance of rational expectations terms ventilated in the micro-founded of the new neoclassical synthesis.