The perils of Taylor rules

Journal of Economic Theory

Volumn 96, Issue 1-2, 2001, Pages 40-69

  Benhabib, Jess ^a   Schmitt Grohé, Stephanie ^b   Uribe, Martín ^c  

^a NEW YORK UNIVERSITY   (United States)

^b RUTGERS UNIVERSITY   (United States)

^c UNIVERSITY OF PENNSYLVANIA   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0002478627     PISSN: 00220531     EISSN: None     Source Type: Journal    
DOI: 10.1006/jeth.1999.2585     Document Type: Article

References (25)

1. Basu S., Fernald J. G. Returns to scale in U.S. production: Estimates and implications. J. Polit. Econ. 105:1997;249-283.
2. Benhabib J., Schmitt-Grohé S., Uribe M. Monetary Policy and Multiple Equilibria. C. V. Starr Center Working Paper. 98-02:1998.
3. Bernanke B., Woodford M. Inflation forecasts and monetary policy. J. Money, Credit, Banking. 29:1997;653-684.
4. Calvo G. A. Staggered prices in a utility-maximizing framework. J. Monet. Econ. 12:1983;383-398.
5. R. Clarida, J. Galí, and, M. Gertler, Monetary policy rules and macroeconomic stability: Evidence and some theory, mimeo, New York University, May 1997.
6. Clarida R., Galí J., Gertler M. Monetary policy rules in practice: some international evidence. Europ. Econ. Rev. 42:1998;1033-1067.
7. L. Christiano, and, C. Gust, Interest rate targeting rules, mimeo, Northwestern University, March 1998.
8. Guckenheimer J., Holmes P. Nonlinear Oscillations, Dynamical Systems, and Bifurcations of Vector Fields. 1983;Springer-Verlag, New York.
9. Kopell N., Howard L. N. Bifurcations and trajectories joining critical points. Adv. Math. 18:1975;306-358.
10. Kuznetsov Y. A. Elements of Applied Bifurcation Theory. 1995;Springer-Verlag, New York.
11. Leeper E. Equilibria under "active" and "passive" monetary and fiscal policies. J. Monet. Econ. 27:1991;129-147.
12. Levin A., Wieland V., Williams J. Robustness of simple monetary policy rules under model uncertainty. Taylor J. B. Monetary Policy Rules. 1998;The Univ. of Chicago Press, Chicago.
13. Lucas R. E. Jr., Stokey N. Money and interest in a cash-in-advance economy. Econometrica. 55:1987;491-514.
14. Prescott E. C. Theory ahead of business cycle measurement. Fed. Res. Bank Minn. Quart. Rev. 10:1986;9-22.
15. Rotemberg J. J. Sticky prices in the United States. J. Polit. Econ. 90:1982;1187-1211.
16. Rotemberg J. J., Woodford M. An optimization-based econometric framework for the evaluation of monetary policy. Bernanke B. S., Rotemberg J. J. NBER Macroeconomics Annual 1997. 1997;297-346 MIT Press, Cambridge, MA.
17. Rotemberg J. J., Woodford M. Interest-rate rules in an estimated sticky price model. Taylor J. B. Monetary Policy Rules. 1998;The Univ. of Chicago Press, Chicago.
18. A. Sbordone, Prices and unit labor costs: A new test of price stickiness, mimeo, Rutgers University, 1998.
19. Schmitt-Grohé S., Uribe M. Price-level determinacy and monetary policy under a balanced-budget requirement. J. Monet. Econ. 45:2000;211-246.
20. Seierstad A., Sydsæter K. Optimal Control Theory with Economic Applications. 1987;North-Holland, Amsterdam.
21. Taylor J. B. Discretion versus rules in practice. Carnegie-Rochester Conf. Ser. Public Policy. 39:1993;195-214.
22. Taylor J. B. A historical analysis of monetary policy rules. Taylor J. B. Monetary Policy Rules. 1998a;The Univ. Chicago Press, Chicago.
23. J. B. Taylor, The robustness and efficiency of monetary policy rules as guidelines for interest rate setting by the European Central Bank, mimeo, Stanford University, 1998b.
24. Woodford M. Control of Public Debt: A Requirement for Price Stability. NBER Working Paper 5684. July 1996.
25. Yun T. Nominal price rigidity, money supply endogeneity, and business cycles. J. Monet. Econ. 37:1996;345-370.