## Abstract This paper investigates the nature of nonlinearities in the monetary policy rule of the US Federal Reserve (Fed) using the flexible approach to nonlinear inference. We find that while there is significant evidence of nonlinearity for the period to 1979, there is little such evidence for
The political viability of rule-based monetary policy
β Scribed by Henry W. Chappell; William R. Keech
- Publisher
- Springer US
- Year
- 1985
- Tongue
- English
- Weight
- 774 KB
- Volume
- 46
- Category
- Article
- ISSN
- 0048-5829
No coin nor oath required. For personal study only.
π SIMILAR VOLUMES
## Abstract This paper uses the empirical framework for formulating and estimating forward looking monetary policy rules developed in Clarida, Gali and Gertler (1998, 1999, 2000, 2001) and Clarida (2000) to assess what we know, don't know, and can't tell about monetary policy making in an open econ
The normal assumption of full information is dropped and the choice of monetary policy rules is instead examined when private agents must learn the rule. A small, forward-looking model is estimated and stochastic simulations conducted with agents using discounted least squares to learn of a change o