Estimated Interest Rate Rules: Do they Determine Determinacy Properties?
Research output: Contribution to journal › Journal article › Research › peer-review
I demonstrate that econometric estimations of nominal interest rate rules may tell little, if anything, about an economy's determinacy properties. In particular, correct inference about the interest-rate response to inflation provides no information about determinacy. Instead, it could reveal whether optimal monetary policymaking is performed under discretion or commitment.
|Journal||B.E. Journal of Macroeconomics|
|Issue number||1 (Contributions), Article 11|
|Number of pages||20|
|Publication status||Published - 2011|