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Money and the transmission mechanism in the optimizing IS-LM specification

Nelson, Edward - Federal Reserve Bank of St. Louis - 2003

recognition to the intertemporal nature of households' saving decisions. Like traditional IS-LM, however, the optimizing version … tends to understate the value of money as an indicator for monetary policy. …

Persistent link: https://www.econbiz.de/10005707651

Monetary policy: why money matters, and interest rates don’t

Thornton, Daniel L. - Federal Reserve Bank of St. Louis - 2012

rate. Money’s role in monetary policy has been tertiary, at best. Indeed, several influential economists have suggested … that money is irrelevant for monetary policy. They suggest that central banks can control inflation by (i) controlling a … rate in order to exert greater control over longer-term rates. I offer an alternative perspective: namely, that money is …

Persistent link: https://www.econbiz.de/10010558739

Using extraneous information to analyze monetary policy in transition economies

Gavin, William T.; Kemme, David M. - Federal Reserve Bank of St. Louis - 2007

Empirical work in macroeconomics is plagued by small sample size and large idiosyncratic variation. This problem is especially severe in the case of transition economies. We use a mixed estimation method incorporating information from OECD country data to estimate the parameters of a...

Persistent link: https://www.econbiz.de/10005490941

Macroeconometric equivalence, microeconomic dissonance, and the design of monetary policy

Levin, Andrew T.; López-Salido, J. David; Nelson, Edward; … - Federal Reserve Bank of St. Louis - 2008

Many recent studies in macroeconomics have focused on the estimation of DSGE models using a system of loglinear approximations to the models' nonlinear equilibrium conditions. The term macroeconometric equivalence encapsulates the idea that estimates using aggregate data based on first-order...

Persistent link: https://www.econbiz.de/10005490955

Solving linear difference systems with lagged expectations by a method of undetermined coefficients

Wang, Peng-fei; Wen, Yi - Federal Reserve Bank of St. Louis - 2006

This paper proposes a solution method to solve linear difference models with lagged expectations. Variables with lagged expectations expand the model's state space greatly when N is large; and getting the system into a canonical form solvable by the traditional methods involves substantial manual...

Persistent link: https://www.econbiz.de/10005490983

The role of monetary policy in the current macroeconomic environment

Poole, William - Federal Reserve Bank of St. Louis - 2001

Presentation to the National Association For Business Economics 43rd Annual Meeting, New York City - Sept. 10, 2001

Persistent link: https://www.econbiz.de/10005420439

The role of monetary policy in the current macroeconomic environment

Poole, William - Federal Reserve Bank of St. Louis - 2001

Presentation to the National Association For Business Economics 43rd Annual Meeting, New York City - Sept. 10, 2001

Persistent link: https://www.econbiz.de/10011185077

Near-rational exuberance

Bullard, James B.; Evans, George W.; Honkapohja, Seppo - Federal Reserve Bank of St. Louis - 2004

monetary policy framework. Inclusion of judgement in forecasts can lead to self-fulfilling fluctuations, but without the …

Persistent link: https://www.econbiz.de/10005707643

International evidence on the stability of the optimizing IS equation

Kara, Amit; Nelson, Edward - Federal Reserve Bank of St. Louis - 2004

In this paper we provide international evidence on the issue of whether the optimizing IS equation is more stable than a backward-looking alternative. The international evidence consist of estimates of IS equations on quarterly data for the UK and Australia, both for the full sample of the last...

Persistent link: https://www.econbiz.de/10005707758

Learning about monetary policy rules

Bullard, James; Mitra, Kaushik - Federal Reserve Bank of St. Louis - 2002

We study macroeconomic systems with forward-looking private sector agents and a monetary authority that is trying to control the economy through the use of a linear policy feedback rule. A typical finding in the burgeoning literature in this area is that policymakers should be relatively...

Persistent link: https://www.econbiz.de/10005352838