Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory
Richard Clarida,
Jordi Galí and
Mark Gertler
The Quarterly Journal of Economics, 2000, vol. 115, issue 1, 147-180
Abstract:
We estimate a forward-looking monetary policy reaction function for the postwar United States economy, before and after Volcker's appointment as Fed Chairman in 1979. Our results point to substantial differences in the estimated rule across periods. In particular, interest rate policy in the Volcker-Greenspan period appears to have been much more sensitive to changes in expected inflation than in the pre-Volcker period. We then compare some of the implications of the estimated rules for the equilibrium properties of inflation and output, using a simple macroeconomic model, and show that the Volcker-Greenspan rule is stabilizing.
Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (3368)
Downloads: (external link)
http://hdl.handle.net/10.1162/003355300554692 (application/pdf)
Access to full text is restricted to subscribers.
Related works:
Working Paper: Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory (1998) 
Working Paper: Monetary Policy Rules and Macroeconomic Stability: Evidence and some Theory (1998)
Working Paper: Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory (1998) 
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:oup:qjecon:v:115:y:2000:i:1:p:147-180.
Ordering information: This journal article can be ordered from
https://academic.oup.com/journals
Access Statistics for this article
The Quarterly Journal of Economics is currently edited by Robert J. Barro, Lawrence F. Katz, Nathan Nunn, Andrei Shleifer and Stefanie Stantcheva
More articles in The Quarterly Journal of Economics from President and Fellows of Harvard College
Bibliographic data for series maintained by Oxford University Press ().