EconPapers    
Economics at your fingertips  
 

Taylor's rule and the Fed, 1970-1997

John P. Judd and Glenn Rudebusch

Economic Review, 1998, 3-16

Abstract: This paper estimates a simple model of the Federal Reserve's \"reaction function\" - that is, the relationship between economic developments and the fed's response to them. We focus on how this estimated reaction function has changed over time. Such changes are not surprising given compositional changes in the Federal Open Market Committee, and we consider three subsamples delineated by the terms of recent fed Chairmen. We find that the estimated reaction functions for each period vary in ways that seem broadly consistent with the success or failure during the period at controlling inflation. These results suggest that a Taylor-rule framework is a useful way to summarize key elements of monetary policy.

Keywords: Monetary policy - United States; Federal Open Market Committee; Federal funds market (United States) (search for similar items in EconPapers)
Date: 1998
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (119)

Downloads: (external link)
https://www.frbsf.org/wp-content/uploads/3-16.pdf Full Text (text/html)

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:fip:fedfer:y:1998:p:3-16:n:3

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in Economic Review from Federal Reserve Bank of San Francisco Contact information at EDIRC.
Bibliographic data for series maintained by Federal Reserve Bank of San Francisco Research Library ().

 
Page updated 2025-03-30
Handle: RePEc:fip:fedfer:y:1998:p:3-16:n:3