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Technology Shocks and Monetary policy: Assessing the Fed's Performance

Author

Listed:
  • Jordi Galí

    (New York University, Universitat Pompeu Fabra, Banco de España)

  • David López-Salido

    (Banco de España)

  • Javier Vallés

    (Banco de España)

Abstract

The purpose of the present paper is twofold. First, we characterize de Fed's systematic response to technology shocks and its implications for US output, hours and inflation. Second we evaluate the extent to which that responses can be accounted for by a simple monetary policy rule in the context of a standard business cycle model with sticky prices.

Suggested Citation

  • Jordi Galí & David López-Salido & Javier Vallés, 2000. "Technology Shocks and Monetary policy: Assessing the Fed's Performance," Working Papers 0013, Banco de España.
    • Handle: RePEc:bde:wpaper:0013
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    References listed on IDEAS

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    More about this item

    Keywords

    monetary policy; technological change; inflation;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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