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Is Forward-Looking Inflation Targeting Destabilizing? The Role of Policy's Response to Current Output under Endogenous Investment
(Vanderbilt University, 2007)
In sticky price models with endogenous investment, virtually all monetary policy rules that set a nominal interest rate in response solely to future inflation induce real indeterminacy of equilibrium. Applying the ...
Increasing Returns and Unsynchronized Wage Adjustment in Sunspot Models of the Business Cycle
(Vanderbilt University, 2010)
Abstract: A challenge facing the literature of equilibrium indeterminacy and sunspot-driven business cycle fluctuations based on increasing returns to scale in production is that the required degree of increasing returns ...