%0 Journal Article
%T Stability and Instability in the ˇ°Alternative Monetary Modelˇ± (AMM)
%A John Smithin
%A Eric Kam
%J Theoretical Economics Letters
%P 211-218
%@ 2162-2086
%D 2024
%I Scientific Research Publishing
%R 10.4236/tel.2024.141012
%X This note clarifies some of the stability issues that arise in the
consideration of alternative interest rate rules for monetary policy. The main
finding is that a nominal interest rate peg leads to instability in the
inflation rate (which can go in either direction) and general economic
instability, whereas a real interest </span><span style=\"font-family:&quot;\">rate </span><span style=\"font-family:&quot;\">rule is
conducive to stability</span><span style=\"font-family:&quot;\">.
%K Inflation instability
%K Nominal policy rate of interest
%K Real policy rate of interest
%K ZRPR
%K ZIRP
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=131588