Search Results - subject:"Taylor's rule"

A note on temporary supply shocks with aggregate demand inertia

Caballero, Ricardo J.; Simsek, Alp - 2022

We study optimal monetary policy during temporary supply contractions when aggregate demand has inertia and expansionary policy is constrained. In this environment, it is optimal to run the economy hot until supply recovers. Positive output gaps in the low-supply phase lessen the negative output...

Persistent link: https://www.econbiz.de/10012886884

Choosing a Taylor rule with limited data availability: the Benchmark approach

Grui, Anton; Liebman, Jeffrey B.; Nikolaychuk, Sergiy; … - 2022

Persistent link: https://www.econbiz.de/10014245898

Taylor Rules and the Deutschmark-Dollar Real Exchange Rate

Engel, Charles M.; West, Kenneth D. - 2022

We explore the link between an interest rate rule for monetary policy and the behavior of the real exchange rate. The interest rate rule, in conjunction with some standard assumptions, implies that the deviation of the real exchange rate from its steady state depends on the present value of a...

Persistent link: https://www.econbiz.de/10014067879

Milton Friedman and the Case for Flexible Exchange Rates and Monetary Rules

Tavlas, G. S.; Dellas, Harris - 2022

rules-based international monetary system –- based on flexible exchange rates and a Taylor rule for each country - is very …

Persistent link: https://www.econbiz.de/10014078166

Unveiling the monetary policy rule in the Euro-area

Kazanas, Thanassis; Tzavalis, Elias - 2022

This paper provides evidence that, since the sign of Maastricht Treaty, euro-area monetary authorities mainly follow a strong anti-inflationary policy. This policy can be described by a threshold monetary policy rule model which allows for distinct inflation policy regimes: a low and high. The...

Persistent link: https://www.econbiz.de/10014079876

Inflation, the Fed, and the Stewardship of Chairman Powell

Webster, Thomas Joseph - 2022

This paper examines the effect of changes in Federal Reserve assets and consumer prices during the stewardship of Federal Reserve Chairman Jerome Powell. Since his appointment in February 2018 until July 2022, the average monthly increase in consumer prices was 0.31 percent—more than 2.4 times...

Persistent link: https://www.econbiz.de/10014029954

Greenspan Didn't Cause the Great Recession : Examining Federal Reserve Chairmen Deviations from the Taylor Rule

Rechard, Kyle; Regmi, Narendra - 2022

This paper models Federal Reserve policy using Taylor's rule for the nominal interest-rate target and examines the … difference between the actual Federal Funds Rate and the Taylor Rule model of behavior for distinct structural changes. Using the … characterized as an unusually deviant from the Taylor Rule, contradicting Taylor's (2007,2009) assertion that Greenspan's deviation …

Persistent link: https://www.econbiz.de/10014084722

Revisiting the Taylor Rule with Divisia Monetary Aggregates : A Wavelet Coherency Analysis

Beyza, Akyol; Furkan, Atlı; Gul, İbrahim Hakki - 2022

In this study, we compare simple sum and Divisia monetary aggregates under a Taylor rule formation for the U.S. economy … reference variable besides the interest rate in the policy-making of FED. For this purpose, a Taylor rule is used with a certain …

Persistent link: https://www.econbiz.de/10013298648

The Taylor rule in Egypt : is it optimal? : is there equilibrium determinacy?

Maher, Mohamed; Zhao, Yanzhi; Tang, Chuanzhong - In: Journal of economic integration : jei 37 (2022) 3, pp. 484-522

Persistent link: https://www.econbiz.de/10013366810

Exchange rate parities and Taylor rule deviations

Anderl, Christina; Caporale, Guglielmo Maria - In: Empirical economics : a quarterly journal of the … 63 (2022) 4, pp. 1809-1835

Persistent link: https://www.econbiz.de/10013440437