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Monetary policy when interest rates are bounded at zero

Fuhrer, Jeff; Madigan, Brian - Federal Reserve Bank of San Francisco - 1994

bound on nominal interest rates does limit the ability of the central bank to stimulate the economy by reducing interest …

Persistent link: https://www.econbiz.de/10005078238

Optimal policy with limited commitment

Kasa, Kenneth - Federal Reserve Bank of San Francisco - 1994

This paper uses Whiteman's(1986) frequency-domain optimization methodology to parameterize the precommitment period in a standard rational expectations policy design model. This allows researchers to adopt an empirical approach to the time consistency issue. That is, the operative commitment...

Persistent link: https://www.econbiz.de/10005078309

On the welfare cost of inflation

Robert E. Lucas, Jr. - Federal Reserve Bank of San Francisco - 1994

Estimates are provided for the social cost of inflation in the U.S. economy. The estimated cost, expressed as a …

Persistent link: https://www.econbiz.de/10005078358

Assessing nominal income rules for monetary policy with model and data uncertainty

Rudebusch, Glenn D. - Federal Reserve Bank of San Francisco - 2000

Nominal income rules for monetary policy have long been debated, but two issues are of particular recent interest. First, there are questions about the performance of such rules over a range of plausible empirical models-especially models with and without rational inflation expectations. Second,...

Persistent link: https://www.econbiz.de/10005721441

Robust monetary policy with competing reference models

Levin, Andrew T.; Williams, John C. - Federal Reserve Bank of San Francisco - 2003

reference model while the true economy lies within a specified neighborhood of the reference model. In this paper, we show that … economy. We find that a robust outcome is attainable only in cases where the objective function places substantial weight on … tolerance of each model economy with respect to deviations from optimal policy. …

Persistent link: https://www.econbiz.de/10005721462

A macro-finance model of the term structure, monetary policy, and the economy

Rudebusch, Glenn D.; Wu, Tao - Federal Reserve Bank of San Francisco - 2003

This paper develops and estimates a macro-finance model that combines a canonical affine no-arbitrage finance specification of the term structure with standard macroeconomic aggregate relationships for output and inflation. From this new empirical formulation, we obtain several important...

Persistent link: https://www.econbiz.de/10005721463

Policy rules for inflation targeting

Rudebusch, Glenn D.; Svensson, Lars E. O. - Federal Reserve Bank of San Francisco - 1998

economy. We compare the properties and outcomes of explicit "instrument rules" as well as "targeting rules." The latter, which …

Persistent link: https://www.econbiz.de/10010702303

Expectations, credibility, and disinflation in a small macroeconomic model

Huh, Chan G.; Lansing, Kevin J. - Federal Reserve Bank of San Francisco - 1998

economy's dynamic transition path during a disinflation. Simulations are compared under four different specifications of the …

Persistent link: https://www.econbiz.de/10010702305

Opportunistic and deliberate disinflation under imperfect credibility

Bomfim, Antulio N.; Rudebusch, Glenn D. - Federal Reserve Bank of San Francisco - 1997

/US model, which allows alternative assumptions to be made about expectations held by agents in the economy; hence, the …

Persistent link: https://www.econbiz.de/10010702307

Forward-looking behavior and optimal discretionary monetary policy

Lansing, Kevin J.; Trehan, Bharat - Federal Reserve Bank of San Francisco - 2003

This paper derives a closed-form solution for the optimal discretionary monetary policy in a small macroeconomic model that allows for varying degrees of forward-looking behavior. We show that a more forward-looking aggregate demand equation serves to attenuate the response to inflation and the...

Persistent link: https://www.econbiz.de/10005401545