Estimating the long-run relationship between interest rates and inflation: A response to McCallum
AbstractThis note demonstrates that Bennett McCallum's recent critique of low frequency estimates of macro-economic relationships is of little empirical significance. It also demonstrates that readily available and frequently used techniques can be used to diagnose the problem McCallum raises. Finally, it shows that the standard critique of expectational distributed lags is not warranted once the role of learning by economic agents is recognized.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Monetary Economics.
Volume (Year): 18 (1986)
Issue (Month): 1 (July)
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Web page: http://www.elsevier.com/locate/inca/505566
Other versions of this item:
- Lawrence H. Summers, 1990. "Estimating the Long-Run Relationship Between Interest Rates and Inflation: A Response to McCallum," NBER Working Papers 1448, National Bureau of Economic Research, Inc.
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