Similar Search Results

Did the Great Inflation occur despite policymaker commitment to a Taylor rule?

Bullard, James; Eusepi, Stefano - 2003

The authors study the hypothesis that misperceptions of trend productivity growth during the onset of the productivity … endogenous investment as well as explicit, exogenous growth in productivity and the labor input. They assume the monetary … the trend productivity growth rate under learning. They find that a substantial portion of the observed increase in …

Persistent link: https://www.econbiz.de/10010397383

Discussion of Cogley and Sargent's "Drifts and volatilities: Monetary policies and outcomes in the post WWII U.S."

Del Negro, Marco - 2003

Cogley and Sargent provide us with a very useful tool for empirical macroeconomics: a Gibbs sampler for the estimation of VARs with drifting coefficients and volatilities. The authors apply the tool to a VAR with three variables-inflation, unemployment, and the nominal interest rate-and two...

Persistent link: https://www.econbiz.de/10010397377

Policy interaction, expectations, and the liquidity trap

Evans, George W.; Honkapohja, Seppo - 2003

The authors consider inflation and government debt dynamics when monetary policy employs a global interest rate rule and private agents forecast using adaptive learning. Because of the zero lower bound on interest rates, active interest rate rules are known to imply the existence of a second,...

Persistent link: https://www.econbiz.de/10010397381

Learning and monetary policy shifts

Schorfheide, Frank - 2003

This paper estimates a dynamic stochastic equilibrium model in which agents use a Bayesian rule to learn about the state of monetary policy. Monetary policy follows a nominal interest rate rule that is subject to regime shifts. The following results are obtained. First, the author's policy...

Persistent link: https://www.econbiz.de/10010397384

Inflation scares and forecast-based monetary policy

Orphanides, Athanasios; Williams, John C. - 2003

Central banks pay close attention to inflation expectations. In standard models, however, inflation expectations are tied down by the assumption of rational expectations and should be of little independent interest to policy makers. In this paper, the authors relax the assumption of rational...

Persistent link: https://www.econbiz.de/10010397398

Drifts and volatilities: monetary policies and outcomes in the post WWII U.S.

Cogley, Timothy; Sargent, Thomas J. - 2003

For a VAR with drifting coefficients and stochastic volatilities, the authors present posterior densities for several objects that are of interest for designing and evaluating monetary policy. These include measures of inflation persistence, the natural rate of unemployment, a core rate of...

Persistent link: https://www.econbiz.de/10010397409

Irrational expectations and econometric practice: discussion of Orphanides and Williams, "Inflation scares and forecast-based monetary policy"

Ireland, Peter N. - 2003

Athanasios Orphanides and John C. Williams' excellent conference paper, "Inflation Scares and Forecast-Based Monetary Policy," contributes importantly to the new and rapidly growing branch of the literature on bounded rationality and learning in macroeconomics. Their paper, like many others,...

Persistent link: https://www.econbiz.de/10010397411

Discussion of Evans and Honkapohja, "Policy interaction, expectations, and the liquidity trap"

Cho, In-Koo - 2003

The result of Benhabib, Schmitt-Grohé, and Uribe (2001) is powerful because it relies only on three rather natural conditions: the Fisher equation, the convex Taylor rule, and the lower bound of the nominal interest rate. Their result is striking because the paper reveals the peril of the...

Persistent link: https://www.econbiz.de/10010397524

Impacts of priors on convergence and escapes from Nash inflation

Sargent, Thomas J.; Williams, Noah - 2003

Recent papers have analyzed how adaptive agents may converge to and escape from self-confirming equilibria. All of these papers have imputed to agents a particular prior about drifting coefficients. In the context of a model of monetary policy, this paper analyzes dynamics that govern both...

Persistent link: https://www.econbiz.de/10010397575

Modest policy interventions

Leeper, Eric M.; Zha, Tao - 2003

The authors present a theoretical and empirical framework for computing and evaluating linear projections conditional on hypothetical paths of monetary policy. A modest policy intervention does not significantly shift agents' beliefs about policy regime and does not induce the changes in...

Persistent link: https://www.econbiz.de/10010397582

1
2
3
4
5
6
7
8
9
10
Next
Last