Policy Regime Changes, Judgment and Taylor rules in the Greenspan Era
Datos Bibliográficos
| ID | 9726506 |
|---|---|
| Autores | CINZIA ALCIDI (Graduate Institute of International and Development Studies), ALESSANDRO FLAMINI (0000-0002-6225-5995, University of Sheffield), Andrea Fracasso (0000-0003-1581-8481, University of Trento) |
| Año | 2011 |
| Volumen | 78 |
| Número | 309 |
| Páginas | 89-107 |
| Fecha de publicación | 2011-01-01 |
| Peer Reviewed | Sí |
| Open Access | Sí |
| Tipo | ARTICLE |
| Revista | Economica (JOURNAL) |
| Identificadores de la revista | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Editorial | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/j.1468-0335.2009.00777.x |
| OpenAlex | W1649389307 |
| Idioma | EN |
| Citas recibidas | 3 |
| Referencias citadas | 28 |
This paper investigates policy deviations from linear Taylor rules motivated by the risk management approach followed by the Fed during the Greenspan era. We estimate a nonlinear monetary policy rule via a logistic smoothing transition regression model where policy‐makers' judgment, proxied by economically meaningful variables, drives the transition across policy regimes. We find that ignoring judgment‐induced nonlinearities while estimating Taylor rules has remarkable costs in terms of fit: above 250 bps in 10 quarters. Although linear Taylor rules describe well the broad contours of monetary policy, they fail to detect relevant policy decisions driven by policy‐makers' judgment
Central bank · Decision rule · Econometrics · Economics · Keynesian economics · Microeconomics · Monetary policy · Taylor rule · Transition (genetics) · Fiscal Policies and Political Economy · Market Dynamics and Volatility · Monetary Policy and Economic Impact
| Obras citantes distintas | 3 |
|---|---|
| Citas por año | 0,27 |
| Intervalo de citas | 2015 - 2025 (11) |
| Velocidad de citación | recent |
| Altamente citado | No |
| Tipos de cita | Neutras: 2 |