Comment on Rudebusch and Williams, “A wedge in the dual mandate: Monetary policy and long-term unemployment”

James Lothian

Journal of Macroeconomics, 2016, vol. 47, issue PA, 19-25

Abstract: Rudebusch and Williams (2015) conclude “A wedge in the dual mandate: Monetary policy and long-term unemployment” with the policy prescription “Optimal policy should trade off a transitory period of excessive inflation in order to bring the broader measure of underemployment to normal levels more quickly." The question that I address is whether our knowledge of the dynamics linking monetary policy, inflation and real growth is sufficiently well-developed that policy recommendations of the sort that Rudebusch and Williams proffer can be effective. I present two bodies of empirical evidence pertinent to this issue. The first has to do with the Phillips Curve itself; the second with the class of models now used to analyze the economic effects of monetary policy.

Keywords: Phillips curve; Inflation; Unemployment; Monetary policy; Taylor curve (search for similar items in EconPapers)
JEL-codes: E31 E51 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0164070415001032
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:47:y:2016:i:pa:p:19-25

DOI: 10.1016/j.jmacro.2015.08.006

Access Statistics for this article

Journal of Macroeconomics is currently edited by Douglas McMillin and Theodore Palivos

More articles in Journal of Macroeconomics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().