Investment and interest rate policy
Subtitle: a discrete time analysis
By: by Charles T. Carlstrom and Timothy S. Fuerst .
Contributors: Fuerst, Timothy Stephen, 1962-
Series: Working paper ;; 03-20; Working paper (Federal Reserve Bank of Cleveland : Online) ;; 03-20.
Publisher: Federal Reserve Bank of Cleveland
Published: 2004
Place of publication: [Cleveland, Ohio]
Language: eng
Format: Electronic resource
Subjects: Interest rates -- Econometric models.
Description: "This paper analyzes the restrictions necessary to ensure that the interest rate policy rule used by the central bank does not introduce local real indeterminacy into the economy. It conducts the analysis in a Calvo-style sticky price model. A key innovation is to add investment spending to the analysis. In this environment, local real indeterminacy is much more likely. In particular, all forward-looking interest rate rules are subject to real indeterminacy."
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 1/15/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.