finance the exogenous government expenditure, we can also have indeterminacy. From this perspective, factor income tax and … tariff share similar channels to generate indeterminacy. …

exhibit local indeterminacy and sunspots when tariff rates are endogenously determined by a balanced-budget rule with a … constant level of government expenditures (or lump-sum tansfers); and (2) indeterminacy disappears if the government finances …

indeterminacy and sunspots as tariff rates are endogenously determined by a balanced-budget rule with a constant level of government … rates is immune to indeterminacy. …

The rational expectations equilibrium of a small open economy can be subject to indeterminacy if foreign monetary … policy does not satisfy the Taylor principle. We study the implications of foreign-induced indeterminacy for the conduct of … monetary policy in a small open economy. In the canonical sticky-price small open economy model, we find that indeterminacy …