This paper explores where central banking is heading after the recent financial crisis. First it discusses the central bank consensus before the crisis and then outlines the key facts learned from the crisis that require changes in the way central banks conduct their business. Finally, it...

The purpose of the present paper is twofold. First, we characterize de Fed's systematic response to technology shocks and its implications for us output, hours and inflation. Second we evaluate the extent to which that responses can be accounted for by a simple monetary policy rule in the...

We estimate a forward-looking monetary policy reaction function for the postwar U.S. economy, pre- and post-October 1979. Our results point to substantial differences in the estimated rule across periods. In particular, interest rate policy in the Volcker-Greenspan period appears to have been...