Monetary Policy Decisions - Comparing Theory and "Inside" Information from MPC Members

Arbeitspapier

We analyze the influence of the Taylor rule on US monetary policy by estimating the policy preferences of the Fed within a DSGE framework. The policy preferences are represented by a standard loss function, extended with a term that represents the degree of reluctance to letting the interest rate deviate from the Taylor rule. The empirical support for the presence of a Taylor rule term in the policy preferences is strong and robust to alternative specifications of the loss function. Analyzing the Fed's monetary policy in the period 2001 - 2006, we find no support for a decreased weight on the Taylor rule, contrary to what has been argued in the literature. The large deviations from the Taylor rule in this period are due to large, negative demand-side shocks, and represent optimal deviations for a given weight on the Taylor rule.

Angaben zum Objekt

• ISBN: 978-82-7553-719-3
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 2013/03

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Social Choice; Clubs; Committees; Associations ; Monetary Policy ; Central Banks and Their Policies
• Thema: Sveriges Riksbank ; Norges Bank ; monetary policy committee ; decision making ; questionnaire study

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Apel, Mikael ; Claussen, Carl Andreas ; Gerlach-Kristen, Petra ; Lennartsdotter, Petra ; Røisland, Øistein
• Ereignis: Veröffentlichung
• (wer): Norges Bank
• (wo): Oslo
• (wann): 2013

Weitere Informationen

• Handle: http://hdl.handle.net/10419/210026
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ