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Licensed Unlicensed Requires Authentication Published by De Gruyter May 5, 2011

Estimated Interest Rate Rules: Do they Determine Determinacy Properties?

  • Henrik Jensen

I demonstrate that econometric estimations of nominal interest rate rules may tell little, if anything, about an economy's determinacy properties. In particular, correct inference about the interest-rate response to inflation provides no information about determinacy. Instead, it could reveal whether optimal monetary policymaking is performed under discretion or commitment.

Published Online: 2011-5-5

©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston

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