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• W2169840786 abstract "We present an extensive analysis of the consequences for global equilibrium determinacy in flexible-price open economies of implementing active interest rate rules, i.e., monetary rules where the nominal interest rate responds more than proportionally to inflation. We show that conditions under which these rules generate aggregate instability by inducing liquidity traps, endogenous cycles, and chaotic dynamics depend on specific characteristics of open economies. In particular, rules that respond to expected future inflation are more prone to induce endogenous cyclical and chaotic dynamics the more open the economy to trade." @default.
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• W2169840786 date "2012-10-01" @default.
• W2169840786 modified "2023-09-24" @default.
• W2169840786 title "Interest rate rules, endogenous cycles, and chaotic dynamics in open economies" @default.
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• W2169840786 doi "https://doi.org/10.1016/j.jedc.2012.06.003" @default.
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