The Leading eBooks Store Online 4,353,660 members ⚫ 1,442,818 ebooks

New to eBooks.com?

Learn more

Interest Rate Rules, Endogenous Cycles, and Chaotic Dynamics in Open Economies

Interest Rate Rules, Endogenous Cycles, and Chaotic Dynamics in Open Economies by Luis-Felipe Zanna
Buy this eBook
US$ 9.00
(If any tax is payable it will be calculated and shown at checkout.)
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.
International Monetary Fund; May 2012
40 pages; ISBN 9781475546415
Read online, or download in secure EPUB or secure PDF format
Title: Interest Rate Rules, Endogenous Cycles, and Chaotic Dynamics in Open Economies
Author: Luis-Felipe Zanna; Marco Airaudo