Unique monetary equilibria with interest rate rules

Bernardino Adão, Isabel Correia, Pedro Teles*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

11 Citations (Scopus)


In contrast to previous literature, we show that it is possible to use interest rate rules in standard monetary models to implement equilibria that are globally unique. This is a contribution to a literature that either concentrates on conditions for local determinacy, or criticizes that approach showing that local determinacy might be associated with global indeterminacy. The interest rate rules we propose are price level targeting rules that respond to the forecasts of the future price level and future economic activity.
Original languageEnglish
Pages (from-to)432-442
Number of pages11
JournalReview of Economic Dynamics
Issue number3
Publication statusPublished - Jul 2011


  • Interest rate rules
  • Monetary policy
  • Price level targeting
  • Unique equilibrium


Dive into the research topics of 'Unique monetary equilibria with interest rate rules'. Together they form a unique fingerprint.

Cite this