Monetary policy with single instrument feedback rules
Abstract: We consider a standard cash in advance monetary model with flexible prices or prices set in advance and show that there are interest rate or money supply rules such that equilibria are unique. The existence of these single instrument rules depends on whether the economy has an infinite horizon or an arbitrarily large but finite horizon.
File(s): File format is application/pdf http://www.chicagofed.org/digital_assets/publications/working_papers/2004/wp2004_30.pdf
Provider: Federal Reserve Bank of Chicago
Part of Series: Working Paper Series
Publication Date: 2004