Nonlinear monetary policy rules: some new evidence for the US

Maria Dolores Ramón and F. J. Ruge Murcia
Authors registered in the RePEc Author Service: Francisco J. Ruge-Murcia, Ramón Maria-Dolores and Juan J. Dolado

UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía

Abstract: This paper dreives optimal monetary policy rules in setups where certainty equivalence does not hold because either central bank preferences are not quadratic, and/or the aggregate supply relation is nonlinear. Analytical results show that these features lead to sign and size aymmetries, and nonlinearities in the policy rule. Reduced-form estimates indicate that US monetary policy can be characterized by a nonlinear policy rule after 1983, but not before 1979. This finding is consistent with the view that the Fed`s inflation preferences during the Volcker-Greenspan regime differ considerably from the ones during the Burns-Miller regime.

Date: 2002-05
New Economics Papers: this item is included in nep-fin and nep-mac
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Citations: View citations in EconPapers (22)

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Related works:
Journal Article: Nonlinear Monetary Policy Rules: Some New Evidence for the U.S (2004)
Working Paper: Nonlinear Monetary Policy Rules: Some New Evidence for the U.S (2003)
Working Paper: Nonlinear Monetary Policy Rules: Some New Evidence for the U.S (2003)
Working Paper: Non-Linear Monetary Policy Rules: Some New Evidence for the US (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:cte:werepe:we022910

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