Title of article
Monetarypolicyinertia:Moreafictionthanafact
Author/Authors
AgostinoConsolo، نويسنده , , CarloA.Favero، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2008
Pages
7
From page
900
To page
906
Abstract
Empiricalestimatesofmonetarypolicyreactionfunctionsfeatureaveryhighestimated
degreeofmonetarypolicyinertia.Thisevidenceisveryhardofreconcilewiththe
alternativeevidenceoflowpredictabilityofmonetarypolicyrates.Inthispaperwe
examinethepotentialrelevanceoftheproblemofweakinstrumentstocorrectly
identifythedegreeofmonetarypolicyinertiainforward-lookingmonetarypolicy
reaction functionofthetypeoriginallyproposedbyTaylor[1993.Discretionversus
policyrulesinpractice.Canergie-RochesterConferenceSeriesonPublicPolicy,39,
195–214].Afterappropriatelydiagnosingandtakingcareoftheweakinstruments
problem, wefindanestimateddegreeofpolicyinertiawhichissignificantlylowerthan
thecommonvalueintheempiricalliteratureonmonetarypolicyrules
Keywords
Monetary policyrulesPolicy gradualismGeneralized methodofmomentsWeakidentification
Journal title
Journal of Monetary Economics
Serial Year
2008
Journal title
Journal of Monetary Economics
Record number
846340
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