The Fed and the New Economy
This paper seeks to understand the behavior of Greenspan's Federal Reserve in the late 1990s. Some authors suggest that the Fed followed a simple quot;Taylor rulequot;, while others argue that it deviated from such a rule because it recognized that the quot;New Economyquot; permitted an easing of policy. We find that a Taylor rule based on inflation and unemployment does break down in the late 1990s. However, the Fed's behavior appears stable once one accounts for the falling NAIRU of the period. A rule based on inflation and the deviation of unemployment from the NAIRU captures the Fed's behavior through the entire period from 1987 to 2000
Year of publication: |
[2007]
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Authors: | Ball, Laurence |
Other Persons: | Tchaidze, Robert (contributor) |
Publisher: |
[2007]: [S.l.] : SSRN |
Subject: | Geldpolitik | Monetary policy | New Economy | New economy | Taylor-Regel | Taylor rule | Natürliche Arbeitslosenquote | Natural rate of unemployment | Zentralbank | Central bank | Regelbindung versus Diskretion | Rules versus discretion |
Saved in:
freely available
Extent: | 1 Online-Ressource (15 p) |
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Series: | HKIMR Working Paper ; No. 10/2002 |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 2002 erstellt |
Other identifiers: | 10.2139/ssrn.1009151 [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012729304