Did the Fed follow an implicit McCallum rule during the Great Depression?
Olivier Damette and
Antoine Parent ()
Post-Print from HAL
In this paper we address the issue of the consistency of the Fed action during the interwar period using a McCallum base money rule. Developing backward-looking models, forward-looking models and counterfactual historical simulation, we found that the McCallum rule provides interesting historical lessons to identify possible driving forces of its policy setting. We give evidence that over the period 1921–1933 the Fed followed an imperfect and partial McCallum rule, moving the money base instrument according to an output target but not correcting for the deviation from this target. Lastly, our outcomes highlight that during the Great Depression the Fed was probably more active than suggested in the literature.
Keywords: Monetary cliometrics; Crisis of 1929; Monetary rule; Central banks (search for similar items in EconPapers)
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01346726
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Published in Economic Modelling, Elsevier, 2016, 52 (Part A), pp.226-232. ⟨10.1016/j.econmod.2014.11.012⟩
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Journal Article: Did the Fed follow an implicit McCallum rule during the Great Depression? (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-01346726
Access Statistics for this paper
More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().