Monetary Policy Rules

by Taylor, John B.

• ISBN13: 9780226791258
• ISBN10: 0226791254
• Format: Paperback
• Copyright: 2001-05-01
• Publisher: Univ of Chicago Pr

Summary

This timely volume presents the latest thinking on the monetary policy rules and seeks to determine just what types of rules and policy guidelines function best. A unique cooperative research effort that allowed contributors to evaluate different policy rules using their own specific approaches, this collection presents their striking findings on the potential response of interest rates to an array of variables, including alterations in the rates of inflation, unemployment, and exchange. Monetary Policy Rules illustrates that simple policy rules are more robust and more efficient than complex rules with multiple variables. A state-of-the-art appraisal of the fundamental issues facing the Federal Reserve Board and other central banks, Monetary Policy Rules is essential reading for economic analysts and policymakers alike.

Author Biography

John B. Taylor is the Mary and Robert Raymond Professor of Economics at Stanford University and a research associate of the National Bureau of Economic Research.

Table of Contents

Acknowledgments	ix
Introduction	1	(14)
John B. Taylor
Performance of Operational Policy Rules in an Estimated Semiclassical Structural Model	15	(42)
Bennett T. McCallum
Edward Nelson
Mark Gertler
Discussion Summary
Interest Rate Rules in an Estimated Sticky Price Model	57	(70)
Julio J. Rotemberg
Michael Woodford
Martin Feldstein
Discussion Summary
Policy Rules for Open Economies	127	(30)
Laurence Ball
Thomas J. Sargent
Discussion Summary
Forward-Looking Rules for Monetary Policy	157	(46)
Nicoletta Batini
Andrew G. Haldane
Donald L. Kohn
Discussion Summary
Policy Rules for Inflation Targeting	203	(60)
Glenn D. Rudebusch
Lars E. O. Svensson
Frederic S. Mishkin
James H. Stock
Discussion Summary
Robustness of Simple Monetary Policy Rules under Model Uncertainty	263	(56)
Andrew Levin
Volker Wieland
John C. Williams
Lawrence J. Christiano
Christopher J. Gust
Discussion Summary
A Historical Analysis of Monetary Policy Rules	319	(30)
John B. Taylor
Richard H. Clarida
Discussion Summary
What Should the Monetary Authority Do When Prices Are Sticky?	349	(56)
Robert G. King
Alexander L. Wolman
Benjamin M. Friedman
Discussion Summary
Rethinking the Role of NAIRU in Monetary Policy: Implications of Model Formulation and Uncertainty	405	(32)
Arturo Estrella
Frederic S. Mishkin
Robert E. Hall
Discussion Summary
Contributors	437	(2)
Author Index	439	(4)
Subject Index	443