Title of article :
Monetarypolicyinertia:Moreafictionthanafact
Author/Authors :
AgostinoConsolo، نويسنده , , CarloA.Favero، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2008
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
Journal title :
Journal of Monetary Economics
