determinacy properties of feedback interest rate rules by guaranteeing inflation stabilization. …

if fiscal policy is passive, i.e., guarantees public debt stabilization irrespectively of the inflation path, monetary … policy can independently be committed to inflation targeting. This can be pursued by following the Taylor principle, i ….e., responding to upward perturbations in inflation with a more than one-for-one increase in the nominal interest rate. This paper …

if fiscal policy is passive, that is, guarantees public debt stabilization irrespectively of the inflation path, monetary … policy can independently be committed to inflation targeting. This can be pursued by following the Taylor principle, i ….e., responding to upward perturbations in inflation with a more than one-for-one increase in the nominal interest rate. This paper …