How forward-looking is the Fed? Direct estimates from a 'Calvo-type' rule

We estimate an alternative type of monetary policy rule according to which the central bank targets a discounted infinite sum of expected inflation and output gaps. Empirical results suggest that the Fed has a mean forward horizon of 4 to 8 quarters.

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Year of publication:	2009
Authors:	Gabriel, Vasco J. ; Levine, Paul ; Spencer, Christopher
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 104.2009, 2, p. 92-95
Publisher:	Elsevier
Keywords:	Calvo-type interest rules Inflation forecast based rules GMM Indeterminacy

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://ebvufind01.dmz1.zbw.eu/10005023517