Koo, Jahyun; Paya, Ivan; Peel, David A. - In: Economics Bulletin 30 (2010) 3, pp. 2464-2477
Given conflicting results on whether the US monetary policy rule exhibited nonlinearity in the post-war period we employ a new Granger non-causality nonlinearity test and non-parametric procedures to re-examine the issue. Both procedures suggest that the Fed followed a nonlinear Taylor rule with...