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Working Paper
Monetary policy and the behavior of long-term interest rates
Real output is strongly correlated with the short-term nominal rate of interest. However, standard models of aggregate demand suggest that real output should be correlated with an expected long-term real rate of interest. We argue that the observed output-nominal rate correlation is an artifact of monetary policy. The systematic behavior of monetary policy, in combination with sluggish inflation adjustment and a structural IS curve that relates output to the rationally expected long-term real rate of interest, has made the sample path of the long-term real rate look like the short-term ...
Conference Paper
Monetary policy and the behavior of long-term real interest rates
Conference Paper
Inflation persistence
Working Paper
The stability of Wicksell's monetary policy rule
Working Paper
Inflation persistence
Monograph
Taxes, inflation, and capital formation
Conference Paper
Inflation persistence