1 / 15

Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory

Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory. By Richard Clarida , Jordi Gali and Mark Gertler In The Quarterly Journal of Economics, February 2000, Vol. 115, No. 1, pp. 147-180

banyan
Télécharger la présentation

Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory By Richard Clarida, JordiGali and Mark Gertler In The Quarterly Journal of Economics, February 2000, Vol. 115, No. 1, pp. 147-180 Presented By DerrekGrunfelder-McCrank, Brandon Hinneberg, and Anthony Galston

  2. Key Question Addressed in Paper • How was the role of monetary policy different pre-1979 and post-1979?

  3. Main Findings • Pre-Volcker Era • Highly accommodative to expected increases in inflation • Volcker-Greenspan Era • Responded to higher expected inflation • Controlling inflation • Forward-looking approach

  4. Outline of Presentation • Background Information • Data • Models • Results • Conclusion

  5. Background Info • 1960s to 1980s vs. Post-1980s • Supply shocks? • Change in the role of monetary policy? • Pre-Volcker vs. Volcker-Greenspan

  6. Data • Quarterly time series from 1960:1-1996:4 • Instrument set

  7. Models • Simple Forward-Looking Rule

  8. Models • Implied Real Rate Rule

  9. Models • Interest Rate Smoothing and Exogenous Shocks

  10. Models • “A comprehensive analysis of the quantitative properties of the model is beyond the scope of the present paper.” (pg. 169) • A comprehensive analysis of the quantitative properties of the model is beyond the scope of the present presentation.

  11. Results

  12. Results

  13. Results

  14. Results

  15. Conclusions • Simple Forward-Looking Policy Reaction Function • Significant differences pre-Volcker (pre-1979) and Volcker-Greenspan (post-1979)

More Related