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• W2114821605 abstract "The paper explores whether central banks can keep their interest rates independent from given foreign rates, and to what extent interest policies designed to stabilise nominal exchange rate changes can be applied instead of, or in addition to, the traditional interest rate response to inflation gaps. This modification of a Taylor Rule is analysed in a simple macro model with some New Keynesian features. Information is imperfect; agents cannot build rational expectations but try to learn ‘true’ market relations. Results show that the Taylor Principle can be generalised in an open economy with flexible exchange rates." @default.
• W2114821605 created "2016-06-24" @default.
• W2114821605 creator A5041958576 @default.
• W2114821605 date "2007-06-01" @default.
• W2114821605 modified "2023-09-25" @default.
• W2114821605 title "EXCHANGE RATE STABILISATION, LEARNING AND THE TAYLOR PRINCIPLE" @default.
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• W2114821605 doi "https://doi.org/10.1111/j.1467-8454.2007.00310.x" @default.
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