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

Vasco J. Gabriel, Paul Levine () and Christopher Spencer ()

Economics Letters, 2009, vol. 104, issue 2, pages 92-95

Abstract: 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.

Keywords: Calvo-type; interest; rules; Inflation; forecast; based; rules; GMM; Indeterminacy (search for similar items in EconPapers)
Date: 2009

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Working Paper: How forward-looking is the Fed? Direct estimates from a ‘Calvo-type’ rule (2008)
Working Paper: How forward-looking is the Fed? Direct estimates from a `Calvo-type' rule (2008)
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Persistent link: http://EconPapers.repec.org/RePEc:eee:ecolet:v:104:y:2009:i:2:p:92-95

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