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Monetary Policy Rules
TLDR
In this article, the authors present a co-operative research effort that allowed contributors to evaluate different policy rules using their own specific approaches, and present their findings on the potential response of interest rates to an array of variables, including alterations in the rates of inflation, unemployment and exchange.Abstract:
This volume presents late-1990s thinking on monetary policy rules and seeks to determine just what types of rules and policy guidelines function best. A co-operative research effort that allowed contributors to evaluate different policy rules using their own specific approaches, this collection presents their findings on the potential response of interest rates to an array of variables, including alterations in the rates of inflation, unemployment, and exchange. This work illustrates that simple policy rules are more robust and more efficient than complex rules with multiple variables. A state-of-the-art appraisal of the fundamental issues facing the Federal Reserve Board and other central banks, the text should be of interest for economic analysts and policymakers alike.read more
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The Science of Monetary Policy: A New Keynesian Perspective
TL;DR: In this article, a review of the recent literature on monetary policy rules is presented, and the authors exposit the monetary policy design problem within a simple baseline theoretical framework and consider the implications of adding various real word complications.
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Inflation Dynamics: A Structural Economic Analysis
Jordi Galí,Mark Gertler +1 more
TL;DR: In this paper, the authors developed and estimated a structural model of inflation that allows for a fraction of firms that use a backward looking rule to set prices, and they concluded that the New Keynesian Phillips curve provides a good first approximation to the dynamics of inflation.
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House Prices, Borrowing Constraints, and Monetary Policy in the Business Cycle
TL;DR: This paper developed a general equilibrium model with sticky prices, credit constraints, nominal loans and asset prices, and found that monetary policy should not target asset prices as a means of reducing output and inflation volatility.
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Estimation and Inference of Impulse Responses by Local Projections
TL;DR: In this article, the authors introduce methods to compute impulse responses without specification and estimation of the underlying multivariate dynamic system by estimating local projections at each period of interest rather than extrapolating into increasingly distant horizons from a given model, as it is done with VARs.
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Optimal Monetary Policy with Staggered Wage and Price Contracts
TL;DR: In this article, the unconditional expectation of average household utility is expressed in terms of the unconditional variances of the output gap, price inflation, and wage inflation, where the model exhibits a tradeoff between stabilizing output gap and price inflation.