Did the Fed follow an implicit McCallum rule during the Great Depression?
Olivier Damette and
Antoine Parent ()
Economic Modelling, 2016, vol. 52, issue PA, 226-232
In this paper we address the issue of the consistency of the Fed action during the interwar period using a McCallum base money rule. Developing backward-looking models, forward-looking models and counterfactual historical simulation, we found that the McCallum rule provides interesting historical lessons to identify possible driving forces of its policy setting. We give evidence that over the period 1921–1933 the Fed followed an imperfect and partial McCallum rule, moving the money base instrument according to an output target but not correcting for the deviation from this target. Lastly, our outcomes highlight that during the Great Depression the Fed was probably more active than suggested in the literature.
Keywords: Monetary cliometrics; Crisis of 1929; Monetary rule; Central banks (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: Did the Fed follow an implicit McCallum rule during the Great Depression? (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:52:y:2016:i:pa:p:226-232
Access Statistics for this article
Economic Modelling is currently edited by S. Hall and P. Pauly
More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Haili He ().