In this paper, we characterize conditions under which interest rate feedback rules that set the nominal interest rate …-looking interest rate feedback rules. …

In this paper, we characterize conditions under which interest rate feedback rules that set the nominal interest rate …-looking interest rate feedback rules. …

Since John Taylor's (1993) seminal paper, a large literature has argued that active interest rate feedback rules, that … stabilizing. In this paper, we argue that once the zero bound on nominal interest rates is taken into account, active interest-rate … feedback rules can easily lead to unexpected consequences. Specifically, in the context of a sticky-price model, we show that …

Since John Taylor's (1993) seminal paper, a large literature has argued that active interest rate feedback rules, that … stabilizing. In this paper, we argue that once the zero bound on nominal interest rates is taken into account, active interest-rate … feedback rules can easily lead to unexpected consequences. Specifically, in the context of a sticky-price model, we show that …

that physical capital plays in stabilizing the real side of the economy when the monetary authority follows interest-rate … feedback rules. We show that with inelastic labor supply equilibrium uniqueness is ensured under both active and passive …

In this paper, we characterize conditions under which interest rate feedback rules that set the nominal interest rate …-looking interest rate feedback rules. …

In this paper, we characterize conditions under which interest rate feedback rules that set the nominal interest rate …-looking interest rate feedback rules. …

Since John Taylor's (1993) seminal paper, a large literature has argued that active interest rate feedback rules, that … rate feedback rules can easily lead to unexpected consequences. Specifically, we show that even if the steady state at … stabilizing. In this paper, we argue that once the zero bound on nominal interest rates is taken into account, active interest …