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Recent Developments in Monetary Policy Analysis : The Roles of Theory and Evidence

McCallum, Bennett T. - 1999

Both academic thinking about monetary economics and the practice of monetary policy have changed dramatically since 1971-1973, when the rational expectations revolution was beginning and the Bretton Woods system was crumbling. The present paper considers whether the various changes that have...

Persistent link: https://www.econbiz.de/10012471709

On Consequences and Criticisms of Monetary Targeting

McCallum, Bennett T. - 1985

The purpose of this paper is to review and evaluate the most important existing criticisms of policy strategies that feature adherence to money stock targets. Four main categories of criticism (and counterargumerits) are analyzed. The first of these involves the claim that accurate money stock...

Persistent link: https://www.econbiz.de/10012477486

Credibility and Monetary Policy

McCallum, Bennett T. - 1984

monetary policy, with special emphasis given to matters pertaining to the U.S. economy and the practices and procedures of the …

Persistent link: https://www.econbiz.de/10012477596

Some Issues Concerning Interest Rate Pegging, Price Level Determinacy, and the Real Bills Doctrine

McCallum, Bennett T. - 1984

In a recent paper, Canzoneri, Henderson, and Rogoff have shown that it is possible for the monetary authority to peg the nominal interest rate without creating price level indeterminacy in a simplified version of the 1975 Sargent-Wallace model. The present paper begins by reviewing that result,...

Persistent link: https://www.econbiz.de/10012477801

Monetarist Rules in the Light of Recent Experience

McCallum, Bennett T. - 1984

Recent experience does not include a "monetarist experiment," as some have argued, but may slightly reinforce preexisting reasons for doubting that the best way of formulating monetarist policy prescriptions is in the form of a constant growth rule for the money stock.A more desirable rule would...

Persistent link: https://www.econbiz.de/10012477819

The Role of Overlapping-Generations Models in Monetary Economics

McCallum, Bennett T. - 1982

The main arguments of this paper can be summarized as follows. (1) The overlapping-generations (OG) structure provides a useful framework for the analysis of macroeconomic issues involving intertemporal allocation. (2) As a "model of money," the basic OG setup -- which excludes cash-in-advance...

Persistent link: https://www.econbiz.de/10012478116

The Liquidity Trap and the Pigou Effect : A Dynamic Analysis with Rational Expectations

McCallum, Bennett T. - 1982

economy may lack--despite price flexibility--automatic market mechanisms that tend to eliminate excess supplies of labor. The …") of an economy that has been shocked away from full employment. The present paper develops a dynamic analysis, in a rather …'s suggestion that, because of expectational effects, such an economy could be unstable. Also considered is Martin J. Bailey …

Persistent link: https://www.econbiz.de/10012478214

Money Stock Control with Reserve and Interest Rate Instruments Under Rational Expectations

McCallum, Bennett T. - 1982

This paper conducts a theoretical comparison of the potential effectiveness, in terms of money stock controllability, of interest rate and reserve instruments. Whereas previous studies have been basically static, the present analysis is carried out in the context of a dynamic macroeconomic model...

Persistent link: https://www.econbiz.de/10012478215

Price Level Determinacy with an Interest Rate Policy Rule and Rational Expectations

McCallum, Bennett T. - 1980

This paper reconsiders a result obtained by Sargent and Wallace, namely, that price level indeterminacy obtains in their well-known model if the monetary authorities adopt a policy feedback rule for the interest rate rather than the money stock. Since the Federal Reserve seems often to have used...

Persistent link: https://www.econbiz.de/10012478574

Inflation Determination with Taylor Rules : Is New Keynesian Analysis Critically Flawed?

McCallum, Bennett T. - 2008

Cochrane (2007) has strongly questioned the basic economic logic of current mainstream monetary policy analysis, arguing that the standard notion --that "determinacy" of a rational expectations (RE) equilibrium suffices to imply that stable inflation behavior will be generated -- is incorrect....

Persistent link: https://www.econbiz.de/10012464114