Investment and interest rate policy: a discrete time analysis

• 成果类型: Article
• 署名作者: Carlstrom, CT; Fuerst, TS
• 署名单位: University System of Ohio; Bowling Green State University; Federal Reserve System - USA; Federal Reserve Bank - Cleveland
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2004.05.002
• 发表日期: 2005
• 页码: 4-20
• 关键词: real indeterminacy; Interest rate rules; monetary policy

摘要

This paper analyzes the restrictions necessary to ensure that the interest rate policy rule used by the central bank does not introduce local real indeterminacy into the economy. It conducts the analysis in a Calvo-style sticky price model. A key innovation is to add investment spending to the analysis. In this environment, local real indeterminacy is much more likely. In particular, all forward-looking interest rate rules are subject to real indeterminacy. (c) 2004 Elsevier Inc. All rights reserved.