Journal ArticleDOI
The Perils of Taylor Rules
TLDR
It is argued that once the zero bound on nominal interest rates is taken into account, active interest-rate feedback rules can easily lead to unexpected consequences and the use of local techniques for monetary policy evaluation might lead to spurious policy recommendations.About:
This article is published in Journal of Economic Theory.The article was published on 2001-01-01. It has received 716 citations till now. The article focuses on the topics: Nominal interest rate & Fisher hypothesis.read more
Citations
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Journal ArticleDOI
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.
Journal ArticleDOI
The Science of Monetary Policy: A New Keynesian Perspective
TL;DR: In contrast to conventional wisdom, this paper showed that gains from commitment may emerge even if the central bank is not trying to inadvisedly push output above its natural level, and also considered the implications of frictions such as imperfect information.
Book
Monetary Theory and Policy
TL;DR: In this article, empirical evidence on money and output is presented, including the Tobin effect and the MIU approximation problems, and a general equilibrium framework for monetary analysis is presented.
Posted ContentDOI
The Zero Bound on Interest Rates and Optimal Monetary Policy
TL;DR: The question of the proper conduct of monetary policy in the presence of a lower bound of zero for overnight nominal interest rates has recently become a topic of lively interest as mentioned in this paper, and the question of how policy should be conducted when the zero bound is reached or when the possibility of reaching it can no longer be ignored.
ReportDOI
Monetary policy and exchange rate volatility in a small open economy
Jordi Galí,Tommaso Monacelli +1 more
TL;DR: In this article, the authors present a small open economy version of the Calvo sticky price model, and show how the equilibrium dynamics can be reduced to a simple representation in domestic inflation and the output gap.
References
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Book
Nonlinear Oscillations, Dynamical Systems, and Bifurcations of Vector Fields
TL;DR: In this article, the authors introduce differential equations and dynamical systems, including hyperbolic sets, Sympolic Dynamics, and Strange Attractors, and global bifurcations.
A Reflection on Nonlinear Oscillations, Dynamical Systems, and Bifurcations of Vector Fields
J. Guckenheimer,P. J. Holmes +1 more
TL;DR: In this paper, the authors introduce differential equations and dynamical systems, including hyperbolic sets, Sympolic Dynamics, and Strange Attractors, and global bifurcations.
Journal ArticleDOI
Staggered prices in a utility-maximizing framework
TL;DR: In this article, the authors developed a model of staggered prices along the lines of Phelps (1978) and Taylor (1979, 1980), but utilizing an analytically more tractable price-setting technology.
Journal ArticleDOI
Discretion versus policy rules in practice
TL;DR: In this article, the authors examine how recent econometric policy evaluation research on monetary policy rules can be applied in a practical policymaking environment, and the discussion centers around a hypothetical but representative policy rule much like that advocated in recent research.
Book
Elements of applied bifurcation theory
TL;DR: One-Parameter Bifurcations of Equilibria in continuous-time systems and fixed points in Discrete-Time Dynamical Systems have been studied in this paper, where they have been used for topological equivalence and structural stability of dynamical systems.