No abstract

Occasionally binding constraints (OBCs) like the zero lower bound (ZLB) can lead to multiple equilibria, and so to belief-driven recessions. To aid in finding policies that avoid this, we derive existence and uniqueness conditions for otherwise linear models with OBCs. Our main result gives necessary and sufficient conditions for such models to have a unique (“determinate”) perfect foresight solution returning to a given steady state, for any initial condition. While standard New Keynesian models have multiple perfect-foresight paths eventually escaping the ZLB, price level targeting restores uniqueness. We also derive equilibrium existence conditions under rational expectations for arbitrary non-linear models.

Contrary to a popular reading of his modal epistemology, Berkeley does not hold that inconceivability entails impossibility, and he cannot therefore argue the impossibility of mind‐independent matter by appealing to facts about what we cannot conceive. Berkeley is explicit about this constraint on his metaphysical argumentation, and, I argue, does respect it in practice. Popular mythology about the ‘master argument’ notwithstanding, the only passages in which he might plausibly seem to employ the principle that inconceivability entails impossibility are those that argue for the inseparability of primary from secondary qualities. However, an alternative reading of these texts is available that is both consistent with Berkeley's express modal epistemology and credible in its own right.

No abstract

No abstract