An Interpretation of Fluctuating Macro Policies

This paper estimates simple regime-switching rules for monetary policy and tax policy over the post-war period in the United States and imposes the estimated policy process on a standard dynamic stochastic general equilibrium model with nominal rigidities. The estimated joint policy process produces a unique stationary rational expectations equilibrium in a simple New Keynesian model. We characterize policy impacts across regimes

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Year of publication:	2005-11-11
Authors:	Leeper, Eric ; Davig, Troy
Institutions:	Society for Computational Economics - SCE
Subject:	Policy rules \| Markov-switching \| DSGE models

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Extent:	application/pdf
Series:	Computing in Economics and Finance 2005.
Type of publication:	Book / Working Paper
Language:	English
Notes:	The text is part of a series Computing in Economics and Finance 2005 Number 249
Classification:	E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System ; E51 - Money Supply; Credit; Money Multipliers ; E52 - Monetary Policy (Targets, Instruments, and Effects)
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005706282