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The Fed and the New Economy Author info | Abstract | Publisher info | Download info | Related research | Statistics Laurence Ball
Robert R Tchaidze
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This paper seeks to understand the behavior of Greenspan’s Federal Reserve in the late 1990s Some authors suggest that the Fed followed a simple Taylor rule while others argue that it deviated from such a rule because it recognized that the New Economy permitted an easing of policy We find that a Taylor rule based on inflation and unemployment does break down in the late 1990s However the Fed’s behavior appears stable once one accounts for the falling NAIRU of the period A rule based on inflation and the deviation of unemployment from the NAIRU captures the Fed’s behavior through the entire period from 1987 to 2000
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Paper provided by The Johns Hopkins University,Department of Economics in its series Economics Working Paper Archive with number
465.
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Date of creation: Dec 2001Date of revision:
Handle: RePEc:jhu:papers:465Contact details of provider: Postal: 3400 North Charles Street Baltimore, MD 21218 Phone: 410-516-7601 Fax: 410-516-7600 Web page: http://www.econ.jhu.edu More information through EDIRC
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Robert R Tchaidze, 2001.
"Estimating Taylor Rules in a Real Time Setting ,"
Economics Working Paper Archive
457, The Johns Hopkins University,Department of Economics.
[Downloadable!]
Gordon, Robert J, 1997.
"The Time-Varying NAIRU and Its Implications for Economic Policy ,"
Journal of Economic Perspectives ,
American Economic Association, vol. 11(1), pages 11-32, Winter.
[Downloadable!] (restricted)
Other versions: Robert J. Gordon, 1998.
"Foundations of the Goldilocks Economy: Supply Shocks and the Time-Varying NAIRU ,"
Brookings Papers on Economic Activity ,
Economic Studies Program, The Brookings Institution, vol. 29(1998-2), pages 297-346.
[Downloadable!]
Laurence Ball & Robert Moffitt, 2001.
"Productivity Growth and the Phillips Curve ,"
Economics Working Paper Archive
450, The Johns Hopkins University,Department of Economics.
Other versions: Staiger, Douglas & Stock, James H & Watson, Mark W, 1997.
"The NAIRU, Unemployment and Monetary Policy ,"
Journal of Economic Perspectives ,
American Economic Association, vol. 11(1), pages 33-49, Winter.
[Downloadable!] (restricted)
John B. Taylor, 1998.
"An Historical Analysis of Monetary Policy Rules ,"
NBER Working Papers
6768, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Taylor, John B., 1993.
"Discretion versus policy rules in practice ,"
Carnegie-Rochester Conference Series on Public Policy ,
Elsevier, vol. 39(1), pages 195-214, December.
[Downloadable!] (restricted)
Douglas Staiger & James H. Stock & Mark W. Watson, 1996.
"How Precise are Estimates of the Natural Rate of Unemployment? ,"
NBER Working Papers
5477, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: N. Gregory Mankiw, 2001.
"U.S. Monetary Policy During the 1990s ,"
NBER Working Papers
8471, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Athanasios Orphanides, 2001.
"Monetary Policy Rules Based on Real-Time Data ,"
American Economic Review ,
American Economic Association, vol. 91(4), pages 964-985, September.
[Downloadable!] (restricted)
Other versions:
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Cette, G. & Pfister, C., 2003.
"The Challenges of the "New Economy" for Monetary Policy ,"
Documents de Travail
100, Banque de France.
[Downloadable!]
Other versions: Anders Møller Christensen & Heino Bohn Nielsen, 2005.
"US Monetary Police 1988-2004: An Empirical Analysis ,"
FRU Working Papers
2005/01, University of Copenhagen. Department of Economics. Finance Research Unit.
[Downloadable!]
Thomas Lubik & Frank Schorfheide, 2003.
"Do Central Banks Respond to Exchange Rate Movements? A Structural Investigation ,"
Economics Working Paper Archive
505, The Johns Hopkins University,Department of Economics.
[Downloadable!]
Other versions: Cette, G. & Mairesse, J. & Kocoglu, Y., 2004.
"ICT Diffusion and Potential Output Growth ,"
Documents de Travail
112, Banque de France.
[Downloadable!]
Other versions: Páez-Farrell, Juan, 2007.
"Monetary Policy Rules in Theory and in Practice: Evidence from the UK and the US ,"
Cardiff Economics Working Papers
E2007/13, Cardiff University, Cardiff Business School, Economics Section.
[Downloadable!]
Other versions: Robert Tchaidze & Alina Carare, 2004.
"The Use and Abuse of Taylor Rules: How precisely can we estimate them? ,"
Econometric Society 2004 Latin American Meetings
132, Econometric Society.
[Downloadable!]
Other versions: Athanasios Orphanides & John C. Williams, 2002.
"Robust monetary policy rules with unknown natural rates ,"
Working Papers in Applied Economic Theory
2003-01, Federal Reserve Bank of San Francisco.
[Downloadable!]
Other versions: Alfonso Palacio-Vera, 2006.
"On Lower-bound Traps: A Framework for the Analysis of Monetary Policy in the ÒAgeÓ of Central Banks ,"
Economics Working Paper Archive
wp_478, Levy Economics Institute, The.
[Downloadable!]
Alan S. Blinder & Ricardo Reis, 2005.
"Understanding the Greenspan standard ,"
Proceedings ,
Federal Reserve Bank of Kansas City, issue Aug, pages 11-96.
[Downloadable!]
Other versions: Temple, Jonathan, 2002.
"An Assessment of the New Economy ,"
CEPR Discussion Papers
3597, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions: Antonio Forte & Giovanni Pesce, 2009.
"The International Financial Crisis: an Expert Survey ,"
series
0024, Dipartimento di Scienze Economiche - Università di Bari, revised Apr 2009.
[Downloadable!]
Felipe Jaque S. & Alfredo Pistelli M., 2008.
"Metodologías para la Estimación de Expectativas sobre Tasas de Política Monetaria ,"
Notas de Investigación Journal Economía Chilena (The Chilean Economy) ,
Central Bank of Chile, vol. 11(1), pages 131-136, April.
[Downloadable!]
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