Correction to “Inflation targeting, output stabilization, and real indeterminacy in monetary models with an interest rate rule”

Full citation:

Platonov, K. (2024) Inflation targeting, output stabilization, and real indeterminacy in monetary models with an interest rate rule. Economic Inquiry, 62(4), 1467–1493. Available from: https://doi.org/10.1111/ecin.13248.

Correction 1:

The exponent on the term $\left(1-\omega \right)$ should be $\frac{1}{\nu -1}$. In the published version, the exponent is $\nu -1$. This typo does not alter any results because the exact closed-form expression for z_t was not used in any derivations.

Correction 2:

In the published version, the multiplier A is missing. This typo does not alter any results because later it is assumed that A = 1.

Correction 3:

The exponent on the term $\left(\frac{i_t}{1+i_t}\right)$ should be $1-\eta$. In the published version, the exponent is $\frac{1-\eta }{\eta }$. This typo does not alter any results because the exact closed-form expression was not used in the analytical derivations.

Correction 4:

There is an error in the Matlab code used for the numerical simulation in Section 4: two equations were linearized instead of being log-linearized. With the correct code, Figure 7 on page 22 should be as follows:

The description of these graphs in the paper should be updated accordingly, and the replication files need to be updated. Nevertheless, the main contribution of the paper (that the Taylor principle is neither necessary nor sufficient for determinacy in the neoclassical monetary model) remains valid.

We apologize for this error.