Search Results
Monograph
Taxes, inflation, and capital formation
Working Paper
Monetary policy and the behavior of long-term interest rates
Real output is strongly correlated with the short-term nominal rate of interest. However, standard models of aggregate demand suggest that real output should be correlated with an expected long-term real rate of interest. We argue that the observed output-nominal rate correlation is an artifact of monetary policy. The systematic behavior of monetary policy, in combination with sluggish inflation adjustment and a structural IS curve that relates output to the rationally expected long-term real rate of interest, has made the sample path of the long-term real rate look like the short-term ...
Conference Paper
Inflation persistence
Working Paper
Inflation persistence
Working Paper
The stability of Wicksell's monetary policy rule
Conference Paper
Inflation persistence
Working Paper
A weekly perfect foresight model of the nonborrowed reserve operating procedure
Of the many studies analyzing the Federal Reserve's post-October 6, 1979 nonborrowed reserve (NBR) operating procedure, none has focused upon weekly money market dynamics under rational expectations. This paper employs the rational expectations assumption in an explicit institutional model of the NBR procedure. The paper is positive rather than normative, isolating the policy elements that comprise the procedure and investigating their dynamic interaction.