An Optimization-Based Econometric Framework for the Evaluation of Monetary Policy

NBER Macroeconomics Annual

Volumn 12, Issue , 1997, Pages 284-346

  Rotemberg, Julio J ^a   Woodford, Michael ^a  

^a NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0345982186     PISSN: 08893365     EISSN: None     Source Type: Book Series    
DOI: 10.1086/654340     Document Type: Article

References (52)

1. Aiyagari, S. R., and R. A. Braun. (1996). Some explorations into optimal cyclical monetary policy. Minneapolis: Federal Reserve Bank of Minneapolis. Working Paper 565.
2. Bernanke, B. S., and A. S. Blinder. (1992). The Federal funds rate and the channels of monetary policy American Economic Review 82(4):901-921.
3. _, and I. Mihov. (1995). Measuring monetary policy. Cambridge, MA: National Bureau of Economic Research. NBER Working Paper 5145.
4. _, and M. Woodford. (1997). Inflation forecasts and monetary policy. Journal of Money, Credit and Banking, forthcoming.
5. Blinder, A. S. (1994). On sticky prices: Academic theories meet the real world. In Monetary Policy, N. G. Mankiw (ed.). Chicago: University of Chicago Press, pp. 117-150.
6. Bryant, R. C., P. Hooper, and C. L. Mann. (1993). Evaluating Policy Regimes, Washington: Brookings Institution.
7. Calvo, G. (1983). Staggered prices in a utility-maximizing framework. Journal of Monetary Economics, 12(3):383-98.
8. Campbell, J. Y., and N. G. Mankiw. (1989). Consumption, income and interest rates: Reinterpreting the time-series evidence. In NBER Macroeconomics Annual 1989, O. J. Blanchard and S. Fischer (eds.). Cambridge, MA: The MIT Press, pp. 185-216.
9. Card, D. (1994). Intertemporal labour supply: An assessment. In Advances in Econometrics, Vol. II, C. Sims (ed.). New York: Cambridge University Press pp. 49-78.
10. Carlton, D. W. (1986). The rigidity of prices. American Economic Review 76(4):637-658.
11. Cecchetti, S. G. (1986). The frequency of price adjustment: A study of the newsstand prices of magazines. Journal of Econometrics 31(3):255-274.
12. Chari, V. V., P. J. Kehoe, and E. R. McGrattan. (1996). Sticky price models of the business cycle: Can the contract multiplier solve the persistence problem. Cambridge MA: National Bureau of Economic Research. NBER Working Paper 5809.
13. Christiano, L., M. Eichenbaum, and C. Evans. (1994). Identification and the effects of a monetary policy shock. In Financial Factors in Economic Stabilization and Growth, M. Blejer et al. (eds.). Cambridge: Cambridge University Press, pp. 36-74.
14. _, _, and _. (1996). The effects of monetary policy shocks: Evidence from the flow of funds. Review of Economics and Statistics 78(1):16-34.
15. Cochrane, J. (1994). Shocks. Carnegie-Rochester Conference Series on Public Policy 41:295-364.
16. Dixit, A., and J. Stiglitz. (1977). Monopolistic competition and optimum product diversity. American Economic Review 67(3):297-308.
17. Dutta, S., M. Bergen, and D. Levy. (1995). Price flexibility: Evidence from scanner data. University of Chicago and Emory University. Mimeo.
18. Feldstein, M., and J. H. Stock. (1994). The use of a monetary aggregate to target nominal GDP. In Monetary Policy, N. G. Mankiw (ed.). Chicago: University of Chicago Press, pp. 7-62.
19. Fuhrer, J. C. (1997a). Inflation/output variance trade-offs and optimal monetary policy. Journal of Money, Credit and Banking 29(2):214-234.
20. _. (1997b). Towards a compact, empirically-verified rational expectations model for monetary policy analysis. Carnegie-Rochester Conference Series on Public Policy, forthcoming.
21. Fuhrer, J. C., and G. Moore. (1995a). Inflation persistence. Quarterly Journal of Economics 110(1):127-160.
22. _, and _. (1995b). Monetary policy trade-offs and the correlation between nominal interest rates and real output. American Economic Review 85(1):219-239.
23. Goodfriend, M. (1991). Interest rates and the conduct of monetary policy. Carnegie-Rochester Conference Series on Public Policy 34:7-30.
24. Henderson, D. W., and W. J. McKibbin. (1993). A comparison of some basic monetary policy regimes for open economies. Carnegie-Rochester Conference Series on Public Policy 39:221-317.
25. Ireland, P. (1997). A small, structural, quarterly model for monetary policy evaluation. Carnegie-Rochester Conference Series on Public Policy, forthcoming.
26. Kashyap, A. K. (1995). Sticky prices: New evidence from retail catalogues. Quarterly Journal of Economics 110(1):245-274.
27. King, R. G., and M. W. Watson. (1996). Money, prices, interest rates and the business cycle. Review of Economics and Statistics 78(1):35-53.
28. _, and A. Wolman. (1996). Inflation targeting in a St. Louis model of the twenty-first century. Cambridge, MA: National Bureau of Economic Research. NBER Working Paper 5507.
29. Leeper, E. M. and C. A. Sims, (1994). Towards a modern macroeconomic model usable for policy analysis. In NBER Macroeconomics Annual 1994, S. Fischer and J. Rotemberg (eds.). Cambridge MA: The MIT Press, pp. 81-117.
30. _, _, and T. Zha. (1996). What does monetary policy do? Brookings Papers on Economic Activity 1:1-63.
31. Levin, A. (1996). A comparison of alternative monetary policy rules in the FRB multi-country model. Washington: Federal Reserve Board of Governors. Mimeo.
32. Lucas, R. E., Jr. (1976). Econometric policy evaluation: A critique. Carnegie-Rochester Conference Series on Public Policy 1:19-46.
33. _. (1993). On the welfare cost of inflation. University of Chicago. Mimeo.
34. McCallum, B. T. (1988). Robustness properties of a rule for monetary policy. Carnegie-Rochester Series on Public Policy 29:173-204
35. _. (1997). Issues in the design of monetary policy rules. Carnegie-Mellon University. Mimeo.
36. _, and E. Nelson. (1997). An optimizing IS-LM specification for monetary policy and business cycle analysis. Cambridge, MA: National Bureau of Economic Research. NBER Working Paper 5875.
37. Parkin, M. (1988). A method for determining whether parameters in aggregative models are structural. Carnegie-Rochester Conference Series on Public Policy 29:215-252.
38. Pencavel, J. H. (1986). Labor supply of men: A survey. In Handbook of Labor Economics, O. Ashenfelter and R. Layard (eds.). Amsterdam: North Holland, Vol. I, pp. 3-102.
39. Roberts, J. M. (1995). New Keynesian economics and the Phillips curve. Journal of Money, Credit and Banking 27:(4):975-984.
40. Rotemberg, J. J. (1982). Sticky prices in the United States. Journal of Political Economy 90(6):1187-1211.
41. _. (1983). Supply shocks, sticky prices and monetary policy. Journal of Money, Credit and Banking 15(4):433-435.
42. _. J. J. and M. Woodford. (1996). Imperfect competition and the effects of energy price increases on economic activity. Journal of Money, Credit and Banking 28(4):549-577.
43. _, and _. (1997a). The cyclical behavior of prices and costs. Princeton University. Mimeo.
44. _, and _. (1997b) An optimization-based econometric framework for the evaluation of monetary policy. Cambridge, MA: National Bureau of Economic Research. NBER Working Paper, forthcoming.
45. Sims, C. A. (1986). Are forecasting models usable for policy analysis? Federal Reserve Bank of Minneapolis Quarterly Review 10(1):2-16.
46. Solon, G., R. Barsky, and J. A. Parker. (1994). Measuring the cyclicality of real wages: How important is composition bias? Quarterly Journal of Economics 109(1):1-26.
47. Strongin, S. (1995). The identification of monetary policy disturbances: Explaining the liquidity puzzle. Journal of Monetary Economics 35(3):463-498.
48. Summers, L. (1991). How should long term monetary policy be determined? Journal of Money, Credit and Banking 23(3):625-631.
49. Taylor, J. B. (1980). Aggregate dynamics and staggered contracts. Journal of Political Economy 88(1):1-23.
50. _. (1993a). Macroeconomic Policy in a World Economy. New York: W. W. Norton.
51. _. (1993b). Discretion versus policy rules in practice. Carnegie-Rochester Conference Series on Public Policy 39:195-214.
52. Woodford, M. (1996). Control of the public debt: A requirement for price stability? Cambridge, MA: National Bureau of Economic Research. NBER Working Paper 5684.