Taylor rules, omitted variables, and interest rate smoothing in the US
AbstractWe test for the presence of interest rate smoothing in forward looking Taylor rules in first differences. We also consider financial and asymmetric preferences indicators. We find that interest rate smoothing is not induced by an omitted variable bias.
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Bibliographic InfoPaper provided by EconWPA in its series Macroeconomics with number 0403009.
Length: 5 pages
Date of creation: 17 Mar 2004
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Taylor rules; Interest rate smoothing; Serial correlation; Observational equivalence; Omitted variables;
Other versions of this item:
- Castelnuovo, Efrem, 2003. "Taylor rules, omitted variables, and interest rate smoothing in the US," Economics Letters, Elsevier, vol. 81(1), pages 55-59, October.
- E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
- E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-03-22 (All new papers)
- NEP-DEV-2004-03-22 (Development)
- NEP-MAC-2004-03-22 (Macroeconomics)
- NEP-MON-2004-03-22 (Monetary Economics)
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