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Circumventing the zero lower bound with monetary policy rules based on money

Belongia, Michael T.; Ireland, Peter N. - In: Journal of macroeconomics 54 (2017) 1, pp. 42-58

Persistent link: https://www.econbiz.de/10011927726

Circumventing the Zero Lower Bound with Monetary Policy Rules Based on Money

Belongia, Michael T. - 2017

Discussions of monetary policy rules after the 2007-2009 recession highlight the potential ineffectiveness of a central bank's actions when the short-term interest rate under its control is limited by the zero lower bound. This perspective assumes, in a manner consistent with the canonical New...

Persistent link: https://www.econbiz.de/10012455524

Optimal continuation versus the timeless perspective in monetary policy

Jensen, Christian; McCallum, Bennett T. - In: Journal of money, credit and banking : JMCB 42 (2010) 6, pp. 1093-1107

Persistent link: https://www.econbiz.de/10008821690

A Monetary Policy Rule for Automatic Prevention of a Liquidity Trap

McCallum, Bennett T. - 2005

effectiveness even if the economy is temporarily shocked into a ZLB situation … are studied within a small open economy model developed by McCallum and Nelson. Results indicate that under ZLB conditions …

Persistent link: https://www.econbiz.de/10012467631

Targeting vs. Instrument Rules for Monetary Policy

McCallum, Bennett T. - 2004

Svensson (JEL, 2003) argues strongly that specific targeting rules first order optimality conditions for a specific objective function and model are normatively superior to instrument rules for the conduct of monetary policy. That argument is based largely upon four main objections to the latter...

Persistent link: https://www.econbiz.de/10012468079

Should Monetary Policy Respond Strongly to Output Gaps?

McCallum, Bennett T. - 2001

Much recent monetary policy analysis has featured stochastic simulations with small structural macroeconomic models that include: a spending vs. saving ( IS') sector; a price-adjustment sector; and an interest rate policy rule. The first two are frequently specified so as to reflect optimizing...

Persistent link: https://www.econbiz.de/10012470498

Monetary Policy for an Open Economy : An Alternative Framework with Optimizing Agents and Sticky Prices

McCallum, Bennett T. - 2001

The new open-economy macroeconomics' seeks to provide an improved basis for monetary and exchange-rate policy through … the construction of open-economy models that feature rational expectations, optimizing agents, and slowly adjusting prices … consumer goods but rather as raw-material inputs to the home economy's productive process. This treatment leads to a clean and …

Persistent link: https://www.econbiz.de/10012470551

The Present and Future of Monetary Policy Rules

McCallum, Bennett T. - 2000

To consider the prospects, looking 20-30 years into the future, for monetary policymaking in accordance with policy rules, one must evaluate their present importance. That requires some definition of what constitutes rule-based monetary policy in practice, since no actual central bank will ever...

Persistent link: https://www.econbiz.de/10012470821

Timeless Perspectives vs. Discretionary Monetary Policy In Forward-Looking Models

McCallum, Bennett T. - 2000

This paper reviews the distinction between the timeless perspective and discretionary modes of monetary policymaking, the former representing rule-based policy as recently formalized by Woodford (1999b). In models with forward-looking expectations, this distinction is greater than in the models...

Persistent link: https://www.econbiz.de/10012470822

Alternative Monetary Policy Rules : A Comparison with Historical Settings for the United States, the United Kingdom, and Japan

McCallum, Bennett T. - 2000

This paper conducts counterfactual historical analysis of several monetary policy rules by contrasting actual settings of instrument variables with values that would have been specified by the rules in response to prevailing conditions. Of particular interest is whether major policy mistakes,...

Persistent link: https://www.econbiz.de/10012471025