NAIRU uncertainty and nonlinear policy rules

Laurence H. Meyer, Eric Swanson and Volker Wieland

No 2001-01, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: Meyer (1999) has suggested that episodes of heightened uncertainty about the NAIRU may warrant a nonlinear policy response to changes in the unemployment rate. This paper offers a theoretical justification for such a nonlinear policy rule, and provides some empirical evidence on the relative performance of linear and nonlinear rules when there is heightened uncertainty about the NAIRU.

Keywords: Inflation (Finance); Unemployment (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (40)

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Related works:
Journal Article: NAIRU Uncertainty and Nonlinear Policy Rules (2001)
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