Help!BK condition is not satisfied bcz of interest rate rule

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Help!BK condition is not satisfied bcz of interest rate rule

Postby dieme » Wed Dec 04, 2013 11:56 am

Hi all,

My problem is that BK condition is not satisfied when interest rate is i in taylor rule, but when that is i(+1), it is OK. That is:

When i=eta+a(+1)-a+1.5*pi , eta+a(+1)-a is the nature rate of i, BK is not satisfied
when i(+1)=eta+a(+1)-a+1.5*pi , BK is satisfied.

See the attachment.


Thanks a loooooooot!

S.Xing
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dieme
 
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Re: Help!BK condition is not satisfied bcz of interest rate

Postby dieme » Thu Dec 19, 2013 5:12 am

UP!
dieme
 
Posts: 3
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