Monetary policy rules and U.S. monetary policy

An inflation-augmented Atesoglu monetary policy rule is introduced. The Atesoglu rule is based on an estimate of the neutral rate of interest of Keynes. Actual Fed monetary policy and policy implied by Atesoglu rules are compared. During the 1994:2-2006:4 period, monetary policy suggested by the inf...

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Bibliographic Details
Published in:Journal of post Keynesian economics 2008-04, Vol.30 (3), p.403-408
Main Author: Atesoglu, H. Sonmez
Format: Article
Language:English
Subjects:
Coefficients
Comparative analysis
Economic recessions
Federal funds rate
Federal Reserve Bank
Full employment
Inflation
Inflation rates
Interest rate policy
Interest rates
Keynesianism
Monetary economics
Monetary policy
Monetary policy rule
neutral rate of interest
Post Keynesian economics
Post-Keynesianism
Studies
U.S.A
Volatility
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Summary:An inflation-augmented Atesoglu monetary policy rule is introduced. The Atesoglu rule is based on an estimate of the neutral rate of interest of Keynes. Actual Fed monetary policy and policy implied by Atesoglu rules are compared. During the 1994:2-2006:4 period, monetary policy suggested by the inflation-augmented Atesoglu rule is closer to that indicated by the Atesoglu rule rather than the actual Fed monetary policy. Findings reveal that the monetary policy implied by the Atesoglu rules has been less restrictive and less volatile than the actual Fed monetary policy.
ISSN:0160-3477
1557-7821
DOI:10.2753/PKE0160-3477300305