Monetary Policy Rules and Macroeconomic Stability: Evidence and some Theory

Richard Clarida, Jordi Galí and Mark Gertler

Working Papers from C.V. Starr Center for Applied Economics, New York University

Abstract: We estimate a forward-looking monetary policy reaction function for the postwar U.S. economy, pre- and post-October 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 mors sensitive to changes in expected inflation than in the pre-Volcker period.

Keywords: BUSINESS CYCLES; MONETARY POLICY (search for similar items in EconPapers)
JEL-codes: E32 E52 (search for similar items in EconPapers)
Pages: 27 pages
Date: 1998
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Citations: View citations in EconPapers (196)

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Related works:
Journal Article: Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory (2000)
Working Paper: Monetary policy rules and macroeconomic stability: Evidence and some theory (1999)
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)
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