Poole, William; Rasche, Robert H.; Wheelock, David C. - Federal Reserve Bank of St. Louis - 2008
The Shadow Open Market Committee was formed in 1973 in response to rising inflation and the apparent unwillingness of U … with price stability. The paper evaluates the Shadow's policy rule in the context of the New Keynesian macroeconomic model … favored by the Shadow would have lowered inflation with less impact on output growth, and with less variability in output and …