E-mail alert  |  Contact  
Search:       Go  
Background  |   Sponsoring institutions  |   Editorial board   |   Advisory board   |   Associate editors
Call for papers  |   Submission guidelines  |   Editorial process
Current issue  |   Past issues  |  
June 2018 issue
List of authors
 
Bandeira, Pappa, Sajedi, Vella
Jacquinot, Lozej, Pisani
Smets
Franta, Libich, Stehlík
Kirsanova, Machadi, Ribeiro
Bi, Leeper, Leith
Slobodyan
Kim, Kim
Rigon, Zanetti
Orphanides
IJCB Home   Read the journal   Current issue
Past issues
2018
 
June
March
January
2017
 
December
September
June
March
February
2016
 
December
September
June
March
2015
 
December
September
June
March
January
2014
 
December
September
June
March
2013
 
December
September
June
March
January
2012
 
December
September
June
March
January
2011
 
December
September
June
March
2010
 
December
September
June
March
2009
 
December
September
June
March
2008
 
December
September
June
March
2007
 
December
September
June
March
2006
 
December
September
June
March
2005
 
December
September
May

Pitfalls of Coordination?

by Sergey Slobodyan
National Research University Higher School of Economics, CERGE-EI, and Financial Research Institute of the Ministry of Finance of Russia

Abstract

I argue that the rather unfavorable conclusions of the three papers in the session on “Coordination and Tradeoffs” might not be as bad as they seem. In particular, I dwell on challenges facing the central bank using an interest rate that is different from the risk-free rate in its Taylor rule, and show that proper redefinition of the intercept and the slope of the rule allows avoidance of inflationary bias and preserves the stability of equilibrium.

JEL Code: E43, E52, E58, E63.

 
Full article (PDF, 10 pages, 237 kb)