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Journal Article
Time to give credit its due?
Journal Article
Using a nominal GDP rule to guide discretionary monetary policy
Given doubts about the reliability of the monetary aggregates as intermediate targets of monetary policy, the Federal Reserve attempts to meet its dual goals--gradual reduction of inflation and mitigation of cyclical downturns in output--through purely discretionary adjustments of an interest rate instrument in response to myriad incoming data. A procedure in which the Fed would consult a nominal GDP feedback rule, while retaining the flexibility to use discretion in its monetary policy decisions, might contribute to achieving its long-run inflation goal without significantly ...
Journal Article
Controlling inflation with an interest rate instrument
In this paper we examine the effectiveness in controlling long-run inflation of feedback rules for monetary policy that link changes in a short-term interest rate to an intermediate target for either nominal GDP or M2. We conclude that a rule aimed at controlling the growth rate of nominal GDP with an interest rate instrument could be an improvement over a purely discretionary policy. Our results suggest that the rule could provide better long-run control of inflation without increasing the volatility of real GDP or interest rates. Moreover, such a rule could assist policymakers even if it ...
Journal Article
The sources of the growth slowdown
Journal Article
Ending the lag
Journal Article
Dynamic adjustment in money demand
Journal Article
Interest rates and the federal deficit
Journal Article
M-2 as a monetary target