Add to ORKGAn influential paper by Clarida, Gaĺı and Gertler (2000) has attributed the great inflation of the 1970 to the violation of the Taylor principle in the conduct of US monetary policy (weak, indeterminacy inducing response to expected inflation). We evaluate this thesis in the context of a standard NK model against a version of the model that incorporates incomplete information-learning about the true state of the economy. The likelihood–based estimation of the model overwhelmingly favors the specification with indeterminacy over the alternatives with determinacy, independent of the presence and size of mis-perceptions
The new-Keynesian, Taylor rule theory of inflation determination relies on explosive dynamics. By ra...
We revisit the contribution of misperceived money to business cycles and, in particular, to the iner...
With positive trend inflation, the Taylor principle is not enough to guarantee a determinate equilib...
ISSN: 2475-5648 ; 2475-563XThe Great Inflation of the 1970s can be understood as the result of equil...
January 2016This paper estimates a New Keynesian model of the U.S. economy over the period following...
We study the hypothesis that misperceptions of trend productivity growth during the onset of the pro...
The two leading explanations for the poor inflation performance during the 1970s are policy opportun...
The baseline version of the new Keynesian (NK) model has important empirical limita-tions, in partic...
The paper re-examines whether the Federal Reserve’s monetary policy was a source of instability duri...
This paper studies the consequences for the monetary policy design of information shortages on the p...
In recent years, activist monetary policy rules responding to inflation and the level of economic ac...
Can U.S. monetary policy in the 1970s be described by a stabilizing Taylor rule when policy is evalu...
The standard version of the new Keynesian (NK) model has important, well known, em-pirical limitatio...
We examine learning, model misspecification, and robust policy responses to misspecification in a qu...
With positive trend inflation, the Taylor principle is not enough to guarantee a determinate equilib...
The new-Keynesian, Taylor rule theory of inflation determination relies on explosive dynamics. By ra...
We revisit the contribution of misperceived money to business cycles and, in particular, to the iner...
With positive trend inflation, the Taylor principle is not enough to guarantee a determinate equilib...
ISSN: 2475-5648 ; 2475-563XThe Great Inflation of the 1970s can be understood as the result of equil...
January 2016This paper estimates a New Keynesian model of the U.S. economy over the period following...
We study the hypothesis that misperceptions of trend productivity growth during the onset of the pro...
The two leading explanations for the poor inflation performance during the 1970s are policy opportun...
The baseline version of the new Keynesian (NK) model has important empirical limita-tions, in partic...
The paper re-examines whether the Federal Reserve’s monetary policy was a source of instability duri...
This paper studies the consequences for the monetary policy design of information shortages on the p...
In recent years, activist monetary policy rules responding to inflation and the level of economic ac...
Can U.S. monetary policy in the 1970s be described by a stabilizing Taylor rule when policy is evalu...
The standard version of the new Keynesian (NK) model has important, well known, em-pirical limitatio...
We examine learning, model misspecification, and robust policy responses to misspecification in a qu...
With positive trend inflation, the Taylor principle is not enough to guarantee a determinate equilib...
The new-Keynesian, Taylor rule theory of inflation determination relies on explosive dynamics. By ra...
We revisit the contribution of misperceived money to business cycles and, in particular, to the iner...
With positive trend inflation, the Taylor principle is not enough to guarantee a determinate equilib...