Benassy, Jean-Pascal - In: Review of Economic Dynamics 3 (2000) 1, pp. 194-211
In this article we reexamine a famous result by Sargent and Wallace (1975) according to which a "pure interest rate peg" leads to nominal price indeterminacy. We use Weil's (1991) generalization of the Sidrauski-Brock model, where arrival of new "generations" of infinitely lived agents is...