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Working Paper
Informational implications of interest rate rules
Returning to a topic first systematically treated by Poole (1970) in a textbook Keynesian model, this paper compares interest rate and money supply rules. Our analysis, by contrast, is conducted within a rational expectations macro model that incorporates flexible prices and informational frictions. With differential information, interest rate targets can affect the information content of market prices and real activity, but these real consequences can always be replicated by an appropriately chosen money stock rule with feedback to economic activity. However, when the policy authority has ...
Journal Article
Inflation targeting in a St. Louis model of the 21st century
Journal Article
The new IS-LM model : language, logic, and limits
Working Paper
Inflation and real activity with firm-level productivity shocks
In the last ten years there has been an explosion of empirical work examining price setting behavior at the micro level. The work has in turn challenged existing macro models that attempt to explain monetary nonneutrality, because these models are generally at odds with much of the micro price data. In response, economists have developed a second generation of sticky-price models that are state dependent and that include both fixed costs of price adjustment and idiosyncratic shocks. Nonetheless, some ambiguity remains about the extent of monetary nonneutrality that can be attributed to costly ...
Working Paper
Money, prices, interest rates and the business cycle
Conference Paper
Inflation targeting in a St. Louis model of the 21st century
Journal Article
Temporal instability of the unemployment-inflation relationship
Journal Article
Inflation Targeting in a St. Louis Model of the 21st Century
Journal Article
The Phillips curve and U.S. macroeconomic policy : snapshots, 1958-1996
By way of a series of snapshots during 1958 through 1996, this article traces the evolving role of the Phillips curve in macroeconomic research and macroeconomic policy discussions.