期刊名称：Departmental Discussion Papers / University of Glasgow, Department of Economics
出版年度：2003
卷号：1
出版社：University of Glasgow, Department of Economics
摘要：In this paper we examine the local determinacy conditions for three
monetary policy regimes in a business cycle model with staggered price
setting. The central bank either controls the nominal interest rate, the
money growth rate, or it conducts open market operations and controls
the bond-to-money ratio herein. All instruments are set contingent on
changes in current in‡ation. For the …rst two cases, equilibrium determinacy
imposes strong restrictions on the endogenous response to changes
in in‡ation, which depend on whether …scal policy is Ricardian or non-
Ricardian. In the case of open market policy, Ricardian equivalence
does not hold and government solvency is guaranteed for …nite bondto-
money ratios. The central bank can ensure determinacy by setting
the latter not in an extremely reactive way. The equilibrium sequence
of real …nancial wealth then exerts a stabilizing impact on prices and
real activity such that equilibrium multiplicity as well as explosiveness
is ruled out.
关键词：Open market operations, Ricardian non-equivalence, interaction
of monetary and …scal policy, …scal theory, equilibrium determinacy.
