Arbeitspapier
Determinacy of interest rate rules with bond transaction services in a cashless economy
Canzoneri and Diba (2004) show that the Taylor principle is not a panacea for equilibrium determinacy in a model where bonds and money provide liquidity services to households. We consider a cashless New Keynesian model with two types of government bonds. One bond provides transaction services, whereas the other is used only as a store of value. We show that the Taylor principle is still sacrosanct, and that the results of Leeper (1991) are confirmed.
- ISBN
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978-952-462-465-7
- Language
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Englisch
- Bibliographic citation
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Series: Bank of Finland Research Discussion Papers ; No. 24/2008
- Classification
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Wirtschaft
Monetary Policy
Computable General Equilibrium Models
- Subject
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monetary policy
fiscal policy
government bonds
determinacy
- Event
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Geistige Schöpfung
- (who)
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Marzo, Massimiliano
Zagaglia, Paolo
- Event
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Veröffentlichung
- (who)
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Bank of Finland
- (where)
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Helsinki
- (when)
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2008
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Marzo, Massimiliano
- Zagaglia, Paolo
- Bank of Finland
Time of origin
- 2008
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