INTEREST RATE PEGS,WEALTH EFFECTS AND PRICE LEVEL DETERMINACY |
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Authors: | Barbara Annicchiarico Giancarlo Marini |
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Abstract: | This paper analyses the issue of price level determinacy in an optimizing general equilibrium model with overlapping generations. It is shown that under a pure interest rate peg wealth effects rule out nominal indeterminacy but give rise to multiple equilibria. |
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