Tesfaselassie, Mewael F.; Schaling, Eric - Institut für Weltwirtschaft (IfW) - 2009
We analyze determinacy and stability under learning (E-stability) of rational expectations equilibria in the Blanchard … explaining unemployment instability. Under lagged data based rules the area where monetary policy delivers both determinacy and E …-based rules – unlike Bullard and Mitra (2002) – an additional explosive region is introduced. Here also the scope for determinacy …