New economy: new policy rules?

James Bullard Eric Schaling
Authors registered in the RePEc Author Service: Eric Schaling () and James Bullard

No 53, Computing in Economics and Finance 2001 from Society for Computational Economics

Abstract: We wish to understand the implications of recent shifts in US productivity for the structure of optimal monetary policy rules. Accordingly, we augment a standard inflation targeting model in which a forward-looking version of the Taylor rule constitutes the optimal monetary policy with regime switching in productivity, and calculate the optimal rule. We find that a rule that incorporates leading indicators about regimes significantly outperforms the Taylor-type rule. We use this result to comment on the new economy events of the 1990s and the stagflation events of the 1970s.

Keywords: economic structure; inflation; monetary policy; new economy (search for similar items in EconPapers)
JEL-codes: C32 E47 E52 E58 (search for similar items in EconPapers)
Date: 2001-04-01
New Economics Papers: this item is included in nep-tid
References: Add references at CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
http://greywww.kub.nl:2080/greyfiles/center/2000/doc/72.pdf main text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to greywww.kub.nl:2080 (No such host is known. )

Related works:
Journal Article: New economy-new policy rules (2001)
Working Paper: New economy - new policy rules? (2000)
Working Paper: New Economy - New Policy Rules? (2000)
Working Paper: New Economy - New Policy Rules? (2000)
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:sce:scecf1:53

Access Statistics for this paper

More papers in Computing in Economics and Finance 2001 from Society for Computational Economics Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().