Skip to Main content Skip to Navigation
Preprints, Working Papers, ...

The Indeterminacy of Determinacy with Fiscal, Macro-prudential or Taylor Rules

Abstract : The determinacy of dynamic stochastic general equilibrium models including fiscal, macro-prudential or Taylor rules relies on the assumption that policy instruments are forward-looking when policy targets are also forward-looking. Blanchard and Kahn (1980) determinacy condition does not forbid to assume that policy instruments are backward-looking when policy targets are forward-looking, as it is the case for Ramsey optimal policy under quasi-commitment. There is indeterminacy of determinacy unless six criteria are considered which are in favor of assuming that policy instruments are backward-looking when policy targets are forward-looking.
Document type :
Preprints, Working Papers, ...
Complete list of metadata

Cited literature [31 references]  Display  Hide  Download

https://halshs.archives-ouvertes.fr/halshs-01877766
Contributor : Caroline Bauer Connect in order to contact the contributor
Submitted on : Thursday, September 20, 2018 - 12:16:27 PM
Last modification on : Friday, April 29, 2022 - 10:13:21 AM
Long-term archiving on: : Friday, December 21, 2018 - 1:52:32 PM

File

wp_201845_.pdf
Files produced by the author(s)

Identifiers

  • HAL Id : halshs-01877766, version 1

Collections

Citation

Jean-Bernard Chatelain, Kirsten Ralf. The Indeterminacy of Determinacy with Fiscal, Macro-prudential or Taylor Rules. 2018. ⟨halshs-01877766⟩

Share

Metrics

Record views

222

Files downloads

354