Interest rate rules for fixed exchange rate regimes
Benigno, Gianluca; Benigno, Pierpaolo; and Ghironi, Fabio
(2007)
Interest rate rules for fixed exchange rate regimes
Journal of Economic Dynamics and Control, 31 (7).
pp. 2196-2211.
ISSN 0165-1889
This paper shows that properly designed interest rate rules can be consistent with maintaining exchange rate stability. It sheds light on the relation between interest rate rules, exchange rate regimes, and determinacy of the rational expectation equilibrium in a modern macroeconomic framework
| Item Type | Article |
|---|---|
| Keywords | fixed exchange rates,interest rate rules |
| Departments | Economics |
| DOI | 10.1016/j.jedc.2006.05.012 |
| Date Deposited | 14 Apr 2011 15:29 |
| URI | https://researchonline.lse.ac.uk/id/eprint/35636 |