Taylor rules and technology shocks
In New Keynesian models, Taylor rules move real rates in the same direction as the natural rate, but less than one-for-one. Permanent, positive technology shocks raise the natural rate—policy is expansionary and hours rise relative to the flexible price case.
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- Jordi Gali, 1999.
"Technology, Employment, and the Business Cycle: Do Technology Shocks Explain Aggregate Fluctuations?,"
American Economic Review,
American Economic Association, vol. 89(1), pages 249-271, March.
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- Tom Doan, . "RATS programs to replicates Gali's AEA 1999 VAR results," Statistical Software Components RTZ00062, Boston College Department of Economics.
- Jordi Gali, 1996. "Technology, Employment, and the Business Cycle: Do Technology Shocks Explain Aggregate Fluctuations," NBER Working Papers 5721, National Bureau of Economic Research, Inc.
- Gali, J., 1996. "Technology, Employment, and the Business Cycle: Do Technology Shocks Explain Aggregate Fluctuations?," Working Papers 96-28, C.V. Starr Center for Applied Economics, New York University.
- Francis, Neville & Ramey, Valerie A., 2005.
"Is the technology-driven real business cycle hypothesis dead? Shocks and aggregate fluctuations revisited,"
Journal of Monetary Economics,
Elsevier, vol. 52(8), pages 1379-1399, November.
- Ramey, Valerie A & Francis, Neville, 2002. "Is The Technology-Driven Real Business Cycle Hypothesis Dead? Shocks and Aggregate Fluctuations Revisted," University of California at San Diego, Economics Working Paper Series qt6x80k3nx, Department of Economics, UC San Diego.
- 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.
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