If you are experiencing problems downloading PDF or HTML fulltext, our helpdesk recommend clearing your browser cache and trying again. If you need help in clearing your cache, please click here . Still need help? Email help@ingentaconnect.com

The Taylor Rule and “Opportunistic” Monetary Policy

$48.00 plus tax (Refund Policy)

Download / Buy Article:

Abstract:

We investigate the possibility that the Taylor rule should be formulated as a threshold process such that the Federal Reserve acts more aggressively in some circumstances than in others. It seems reasonable that the Federal Reserve would act more aggressively when inflation is high than when it is low. Similarly, it might be expected that the Federal Reserve responds more to a negative than a positive output gap. Although these specifications receive some empirical support, we find that a modified threshold model that is consistent with “opportunistic” monetary policy makes significant progress toward explaining Federal Reserve behavior.

Keywords: C22; E32; E52; nonlinear Taylor rule; opportunistic monetary policy; threshold regression

Document Type: Research Article

DOI: http://dx.doi.org/10.1111/j.1538-4616.2010.00313.x

Affiliations: Helle Bunzel, and at the Center for Research in Econometric Analysis is an Associate Professor of Economics, Department of Economics, Iowa State University, Ames (  )., Email: hbunzel@iastate.edu

Publication date: August 1, 2010

Related content

Tools

Favourites

Share Content

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more