Estimating Monetary Policy Rules When Nominal Interest Rates Are Stuck at Zero
Jinill Kim and
Seth Pruitt ()
Journal of Money, Credit and Banking, 2017, vol. 49, issue 4, 585-602
Abstract:
Did the Federal Reserve's response to economic fundamentals change with the onset of the Global Financial Crisis? Estimation of a monetary policy rule to answer this question faces a censoring problem since the interest rate target has been set at the zero lower bound since late 2008. Surveys by forecasters allow us to sidestep the problem and to use conventional regressions and break tests. We find that, in the opinion of forecasters, the Fed's inflation response has decreased and the unemployment response has increased, which suggests that the Federal Reserve's commitment to stable inflation has become weaker in the eyes of the professional forecasters.
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)
Downloads: (external link)
https://doi.org/10.1111/jmcb.12391
Related works:
Working Paper: Estimating Monetary Policy Rules When Nominal Interest Rates Are Stuck at Zero (2015) 
Working Paper: Estimating Monetary Policy Rules When Nominal Interest Rates Are Stuck at Zero (2013) 
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:wly:jmoncb:v:49:y:2017:i:4:p:585-602
Access Statistics for this article
Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West
More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley Content Delivery ().