IDEAS home Printed from https://ideas.repec.org/a/fip/fedcec/00098.html
   My bibliography  Save this article

Changing Policy Rule Parameters Implied by the Median SEP Paths

Author

Listed:
  • Edward S. Knotek

Abstract

This Commentary estimates the implied parameters of simple monetary policy rules using the median paths for the federal funds rate and other economic variables provided in the Federal Open Market Committee?s Summary of Economic Projections (SEP). The implied policy rule parameters appear to have changed over time, as the federal funds rate projections have become less responsive to the unemployment gap. This finding could reflect changes in policymakers? preferences, uncertainty over other aspects of the policy rule, or limitations of estimating simple monetary policy rules from the median SEP paths.

Suggested Citation

  • Edward S. Knotek, 2019. "Changing Policy Rule Parameters Implied by the Median SEP Paths," Economic Commentary, Federal Reserve Bank of Cleveland, issue April.
    • Handle: RePEc:fip:fedcec:00098
    as

    Download full text from publisher

    File URL: https://www.clevelandfed.org/newsroom-and-events/publications/economic-commentary/2019-economic-commentaries/ec-201906-changing-policy-rule-parameters.aspx
    File Function: Full text
    Download Restriction: no

    References listed on IDEAS

    as
    1. John B. Taylor, 1999. "Introduction to "Monetary Policy Rules"," NBER Chapters, in: Monetary Policy Rules, pages 1-14, National Bureau of Economic Research, Inc.
    2. John B. Taylor, 1999. "A Historical Analysis of Monetary Policy Rules," NBER Chapters, in: Monetary Policy Rules, pages 319-348, National Bureau of Economic Research, Inc.
    3. Christian Garciga & Edward S. Knotek & Randal Verbrugge, 2016. "Federal Funds Rates Based on Seven Simple Monetary Policy Rules," Economic Commentary, Federal Reserve Bank of Cleveland, issue July.
    4. Michael J. Dueker & Robert H. Rasche, 2004. "Discrete policy changes and empirical models of the federal funds rate," Review, Federal Reserve Bank of St. Louis, vol. 86(Nov), pages 61-72.
    5. Edward S. Knotek, 2007. "How useful is Okun's law?," Economic Review, Federal Reserve Bank of Kansas City, vol. 92(Q IV), pages 73-103.
    6. Michael J. Dueker, 2002. "The monetary policy innovation paradox in VARs: a \\"discrete\\" explanation," Review, Federal Reserve Bank of St. Louis, vol. 84(Mar.), pages 43-50.
    7. John B. Taylor, 1999. "Monetary Policy Rules," NBER Books, National Bureau of Economic Research, Inc, number tayl99-1, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gerlach, Stefan & Stuart, Rebecca, 2020. "What drives the FOMC’s dot plots?," Journal of International Money and Finance, Elsevier, vol. 104(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedcec:00098. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/frbclus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.