Monetary policy rules and macroeconomic stability: Some new evidence.
I revisit the question of indeterminacy in US monetary policy using limited-information identification-robust methods. I find that the conclusions of Clarida, Galí, and Gernter (2000) that policy was inactive before 1979 are robust, but the evidence over the Volcker-Greenspan periods is inconclusive...
| Main Author: | |
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| Format: | Journal article |
| Language: | English |
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AEA
2010
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| _version_ | 1826299531605573632 |
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| author | Mavroeidis, S |
| author_facet | Mavroeidis, S |
| author_sort | Mavroeidis, S |
| collection | OXFORD |
| description | I revisit the question of indeterminacy in US monetary policy using limited-information identification-robust methods. I find that the conclusions of Clarida, Galí, and Gernter (2000) that policy was inactive before 1979 are robust, but the evidence over the Volcker-Greenspan periods is inconclusive. I show that this is in fact consistent with policy being active over that period. Problems of identification also arise because policy reaction has been more gradual recently. At a methodological level, the paper demonstrates that identification issues should be taken seriously, and that identification-robust methods can be informative even when they produce wide confidence sets. |
| first_indexed | 2024-03-07T05:03:21Z |
| format | Journal article |
| id | oxford-uuid:d9145bb6-6b4f-42fd-9fed-5fed50c502c5 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T05:03:21Z |
| publishDate | 2010 |
| publisher | AEA |
| record_format | dspace |
| spelling | oxford-uuid:d9145bb6-6b4f-42fd-9fed-5fed50c502c52022-03-27T08:53:15ZMonetary policy rules and macroeconomic stability: Some new evidence.Journal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:d9145bb6-6b4f-42fd-9fed-5fed50c502c5EnglishDepartment of Economics - ePrintsAEA2010Mavroeidis, SI revisit the question of indeterminacy in US monetary policy using limited-information identification-robust methods. I find that the conclusions of Clarida, Galí, and Gernter (2000) that policy was inactive before 1979 are robust, but the evidence over the Volcker-Greenspan periods is inconclusive. I show that this is in fact consistent with policy being active over that period. Problems of identification also arise because policy reaction has been more gradual recently. At a methodological level, the paper demonstrates that identification issues should be taken seriously, and that identification-robust methods can be informative even when they produce wide confidence sets. |
| spellingShingle | Mavroeidis, S Monetary policy rules and macroeconomic stability: Some new evidence. |
| title | Monetary policy rules and macroeconomic stability: Some new evidence. |
| title_full | Monetary policy rules and macroeconomic stability: Some new evidence. |
| title_fullStr | Monetary policy rules and macroeconomic stability: Some new evidence. |
| title_full_unstemmed | Monetary policy rules and macroeconomic stability: Some new evidence. |
| title_short | Monetary policy rules and macroeconomic stability: Some new evidence. |
| title_sort | monetary policy rules and macroeconomic stability some new evidence |
| work_keys_str_mv | AT mavroeidiss monetarypolicyrulesandmacroeconomicstabilitysomenewevidence |