01721cas a2200241 a 4500 AALejournalIMF009978 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451950618 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Nominal Interest Rate Pegging Under Alternative Expectations Hypotheses. Washington, D.C. : International Monetary Fund, 1988. 1 online resource (54 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Nominal interest rate pegging leads to instability in an IS-LM model with a vertical long-run Phillips curve and backward-looking inflation expectations. However, it does not lead to instability in several large multicountry econometric models, apparently primarily because these models have nonvertical long-run Phillips curves. Nominal interest rate pegging leads to price level and output indeterminacy in a model with staggered contracts and rational expectations. However, when a class of money supply rules with interest rate smoothing is introduced, and interest rate pegging is viewed as the limit of interest rate smoothing, the price level and output are determinate. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1988/094 Full text available on IMF http://elibrary.imf.org/view/journals/001/1988/094/001.1988.issue-094-en.xml IMF e-Library