Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory

Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory (2000)

by Richard Clarida , Mark Gertler

Venue:	Journal of Economics
Citations:	397 - 3 self

Datum	Value	Source
TITLE	Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory	INFERENCE
AUTHOR NAME	Richard Clarida	SVM HeaderParse 0.2
AUTHOR AFFIL	JORDI GALÍ	SVM HeaderParse 0.2
AUTHOR NAME	Mark Gertler	SVM HeaderParse 0.2
ABSTRACT	We estimate a forward-looking monetary policy reaction function for the postwar United States economy, before and after Volcker’s appointment as Fed Chairman in 1979. Our results point to substantial differences in the estimated rule across periods. In particular, interest rate policy in the Volcker-Greenspan period appears to have been much more sensitive to changes in expected in�ation than in the pre-Volcker period. We then compare some of the implications of the estimated rules for the equilibrium properties of in�ation and output, using a simple macroeconomic model, and show that the Volcker-Greenspan rule is stabilizing. I.	SVM HeaderParse 0.2
YEAR	2000	INFERENCE
VENUE	Journal of Economics	INFERENCE
VENUE TYPE	JOURNAL	INFERENCE
PAGES	147--180	INFERENCE
VOLUME	115	INFERENCE
CITATIONS	34 found	ParsCit 1.0