The Bank of England's report on its approach to macroeconomic modeling reveals the underlying structure of their macroeconomic model used for policy purposes. A simplified representation of the Bank of England model is presented, which is less disaggregated than the original model and focuses on...

In this paper, the Taylor rule and the Keynesian monetary policy rules recently introduced by Atesoglu are empirically compared for the 1994:2-2007:4 period. The findings reveal that the Atesoglu rule and the inflation-augmented Atesoglu rule are able to provide a better explanation of the...

An inflation-augmented Atesoglu monetary policy rule is introduced. The Atesoglu rule is based on an estimate of the neutral rate of interest of Keynes. Actual Fed monetary policy and policy implied by Atesoglu rules are compared. During the 1994:2-2006:4 period, monetary policy suggested by the...

In this paper, a new monetary policy rule is introduced. The proposed rule is based on Keynes's neutral rate of interest idea, a concept defined in the General Theory. The primary goal of the proposed rule is to ensure that the macroeconomy produces an output equal to its full-employment level....

Practical monetary policy concerns and recent theoretical developments have revived interest in the concept of a "natural" equilibrium real interest rate. The natural real interest rate is potentially an important concept for monetary policy makers and some researchers have suggested that the...