Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If you need an accessible version of this item please contact JSTOR User Support

Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory

Richard Clarida, Jordi Gali and Mark Gertler
The Quarterly Journal of Economics
Vol. 115, No. 1 (Feb., 2000), pp. 147-180
Published by: Oxford University Press
Stable URL: http://www.jstor.org/stable/2586937
Page Count: 34
  • Get Access
  • Download ($42.00)
  • Cite this Item
If you need an accessible version of this item please contact JSTOR User Support
Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory
Preview not available

Abstract

We estimate a forward-looking monetary policy reaction function for the postwar United States economy, before and after Volcker's appointment as Fed Chairman in 1979. Our results point to substantial differences in the estimated rule across periods. In particular, interest rate policy in the Volcker-Greenspan period appears to have been much more sensitive to changes in expected inflation than in the pre-Volcker period. We then compare some of the implications of the estimated rules for the equilibrium properties of inflation and output, using a simple macroeconomic model, and show that the Volcker-Greenspan rule is stabilizing.

Page Thumbnails

  • Thumbnail: Page 
147
    147
  • Thumbnail: Page 
148
    148
  • Thumbnail: Page 
149
    149
  • Thumbnail: Page 
150
    150
  • Thumbnail: Page 
151
    151
  • Thumbnail: Page 
152
    152
  • Thumbnail: Page 
153
    153
  • Thumbnail: Page 
154
    154
  • Thumbnail: Page 
155
    155
  • Thumbnail: Page 
156
    156
  • Thumbnail: Page 
157
    157
  • Thumbnail: Page 
158
    158
  • Thumbnail: Page 
159
    159
  • Thumbnail: Page 
160
    160
  • Thumbnail: Page 
161
    161
  • Thumbnail: Page 
162
    162
  • Thumbnail: Page 
163
    163
  • Thumbnail: Page 
164
    164
  • Thumbnail: Page 
165
    165
  • Thumbnail: Page 
166
    166
  • Thumbnail: Page 
167
    167
  • Thumbnail: Page 
168
    168
  • Thumbnail: Page 
169
    169
  • Thumbnail: Page 
170
    170
  • Thumbnail: Page 
171
    171
  • Thumbnail: Page 
172
    172
  • Thumbnail: Page 
173
    173
  • Thumbnail: Page 
174
    174
  • Thumbnail: Page 
175
    175
  • Thumbnail: Page 
176
    176
  • Thumbnail: Page 
177
    177
  • Thumbnail: Page 
178
    178
  • Thumbnail: Page 
179
    179
  • Thumbnail: Page 
180
    180