The Taylor Rule and the Transformation of Monetary Policy
Title | The Taylor Rule and the Transformation of Monetary Policy PDF eBook |
Author | Robert Leeson |
Publisher | Hoover Press |
Total Pages | 368 |
Release | 2013-09-01 |
Genre | Political Science |
ISBN | 0817914064 |
A contributors' "who's who" from the academic and policy communities explain and provide perspectives on John Taylor's revolutionary thinking about monetary policy. They explore some of the literature that Taylor inspired and help us understand how the new ways of thinking that he pioneered have influenced actual policy here and abroad.
The Taylor Rule and the Transformation of Monetary Policy
Title | The Taylor Rule and the Transformation of Monetary Policy PDF eBook |
Author | |
Publisher | |
Total Pages | |
Release | 2007 |
Genre | |
ISBN |
This paper examines the intellectual history of the Taylor Rule and its considerable influence on macroeconomic research and monetary policy. The paper traces the historical antecedents to the Taylor rule, emphasizing the contributions of three prominent advocates of rules--Henry Simons, A.W.H. Phillips, and Milton Friedman. The paper then examines the evolution of John Taylor's thinking as an academic and policy advisor leading up to his formulation of the Taylor rule. Finally, the paper documents the influence of the Taylor rule on macroeconomic research and the Federal Reserve's conduct of monetary policy.
Dissecting Taylor Rules in a Structural VAR
Title | Dissecting Taylor Rules in a Structural VAR PDF eBook |
Author | Woon Gyu Choi |
Publisher | International Monetary Fund |
Total Pages | 28 |
Release | 2010-01-01 |
Genre | Business & Economics |
ISBN | 1451962290 |
This paper uncovers Taylor rules from estimated monetary policy reactions using a structural VAR on U.S. data from 1959 to 2009. These Taylor rules reveal the dynamic nature of policy responses to different structural shocks. We find that U.S. monetary policy has been far more responsive over time to demand shocks than to supply shocks, and more aggressive toward inflation than output growth. Our estimated dynamic policy coefficients characterize the style of policy as a "bang-bang" control for the pre-1979 period and as a gradual control for the post-1979 period.
Historical Monetary Policy Analysis and the Taylor Rule
Title | Historical Monetary Policy Analysis and the Taylor Rule PDF eBook |
Author | Athanasios Orphanides |
Publisher | |
Total Pages | 70 |
Release | 2003 |
Genre | Monetary policy |
ISBN |
Monetary Policy Rules
Title | Monetary Policy Rules PDF eBook |
Author | John B. Taylor |
Publisher | University of Chicago Press |
Total Pages | 460 |
Release | 2007-12-01 |
Genre | Business & Economics |
ISBN | 0226791262 |
This timely volume presents the latest thinking on the monetary policy rules and seeks to determine just what types of rules and policy guidelines function best. A unique cooperative research effort that allowed contributors to evaluate different policy rules using their own specific approaches, this collection presents their striking findings on the potential response of interest rates to an array of variables, including alterations in the rates of inflation, unemployment, and exchange. Monetary Policy Rules 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, Monetary Policy Rules is essential reading for economic analysts and policymakers alike.
Monetary Policy Strategies
Title | Monetary Policy Strategies PDF eBook |
Author | International Monetary Fund |
Publisher | International Monetary Fund |
Total Pages | 28 |
Release | 1988-10-04 |
Genre | Business & Economics |
ISBN | 1451952570 |
The paper considers the merits of rules and discretion for monetary policy when the structure of the macroeconomic model and the probability distributions of disturbances are not well defined. It is argued that when it is costly to delay policy reactions to seldom-experienced shocks until formal algorithmic learning has been accomplished, and when time consistency problems are significant, a mixed strategy that combines a simple verifiable rule with discretion is attractive. The paper also discusses mechanisms for mitigating credibility problems and emphasizes that arguments against various types of simple rules lose their force under a mixed strategy.
Historical Monetary Policy Analysis and the Taylor Rule
Title | Historical Monetary Policy Analysis and the Taylor Rule PDF eBook |
Author | Board of Governors of the Federal Reserve System |
Publisher | Createspace Independent Publishing Platform |
Total Pages | 50 |
Release | 2014-10-22 |
Genre | Business & Economics |
ISBN | 9781502926777 |
This study examines the usefulness of the Taylor-rule framework as an organizing device for describing the policy debate and evolution of monetary policy in the United States. Monetary policy during the 1920s and since the 1951 Treasury-Federal Reserve Accord can be broadly interpreted in terms of this framework with rather surprising consistency. In broad terms, during these periods policy has been generally formulated in a forward- looking manner with price stability and economic stability serving as implicit or explicit guides. As early as the 1920s, measures of real economic activity relative to “normal" or “potential" supply appear to have influenced policy analysis and deliberations. Condence in such measures as guides for activist monetary policy proved counterproductive at times, resulting in excessive activism, such as during the Great Inflation and at the brink of the Great Depression. Policy during the past two decades is broadly consistent with natural- growth targeting variants of the Taylor rule that exhibit less activism.