Series: IMF Working Papers
Author(s): Luis-Felipe Zanna , and Marco Airaudo
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 May 2012
Keywords: Small Open Economy, Interest Rate Rules, Taylor Rules, Multiple Equilibria, Chaos, Cycles and Endogenous Fluctuations, inflation, nominal interest rate, open economy, trade openness
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 r...