# Interest Rate Rules and Nominal Determinacy

@article{Dotsey1990InterestRR, title={Interest Rate Rules and Nominal Determinacy}, author={Michael Dotsey and John H. Boyd}, journal={Federal Reserve Bank of Richmond Research Publications}, year={1990} }

Monetary economists have recently begun a serious study of money supply rules that allow the Fed to adjustably peg the nominal interest rate under rational expectations. These rules vary from procedures that produce stationary nominal magnitudes to those that generate nonstationarities in nominal variables. Our paper investigates the determinacy properties of three representative interest rate rules. ; We use Blanchard and Kahn's solution technique as a starting point. It doesn't directly apply…

## 19 Citations

### Interest Rate Control and Nonconvergence to Rational Expectations

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- 1992

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### Winding number criterion for existence and uniqueness of equilibrium in linear rational expectations models

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### Limits on Interest Rate Rules in the IS Model

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### Economic Quarterly

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N THE THREE DECADES since the publication of the seminal work on rational expectations, a steely consensus has been forged in the economics profession regarding acceptable modeling procedures.’…

## 25 References

### Some Issues Concerning Interest Rate Pegging, Price Level Determinacy, and the Real Bills Doctrine

- Economics
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### Informational Implications of Interest Rate Rules

- Economics
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Returning to a topic first systematically treated by Poole (1970) in a textbook Keynesian model, this paper compares interest rate and money supply rules. Our analysis, by contrast, is conducted…

### The Information Content of the Interest Rate and Optimal Monetary Policy

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Optimal monetary policy rules are derived in a rational expectations cum contracting framework. Monetary policy is redundant if wage setters exploit the incomplete current information embodied in…

### Solutions of Linear Rational Expectations Models

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Linear rational expectations models generally have a large number of solutions. It is thus important to describe them exhaustively in order to study their properties and subsequently estimate which…

### Expectational Stability and the Multiple Equilibria Problem in Linear Rational Expectations Models

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Linear models involving expectations of future endogenous variables generally have multiple rational expectations equilibria. This paper investigates the stability of solutions in the disequilibrium…