Publications [#196672] of Kent P Kimbrough

Journal Articles

1. K.P. Kimbrough, Unique Monetary Equilibria with Interest Rate Rules: An Extension, Economics Letters (forthcoming)
   (last updated on 2011/11/15)

   Abstract:
   In a recent paper Adão, Correia, and Teles (2011), using a cash-in-advance framework, derive an interest rate rule that results in a unique equilibrium. The resulting interest rate rule is forward looking and the interest rate responds positively to forecasts of future real activity and to forecasts of the future price level. This paper extends their approach to a transactions cost environment. The resulting interest rate rule has the added feature that, in line with previous studies, the nominal interest rate responds positively to forecasts of future inflation.