Arbeitspapier
Noisy Information, Interest Rate Shocks and the Great Moderation
In this paper we quantitatively evaluate the hypothesis that the Great Moderation is partly the result of a less activist monetary policy. We simulate a New Keynesian model where the central bank can only observe a noisy estimate of the output gap and fnd that the less pronounced reaction of the Federal Reserve to output gap uctuations since 1979 can account for half of the reduction in the standard deviation of GDP associated with the Great Moderation. Our simulations are consistent with the empirically documented smaller magnitude and impact of interest rate shocks since the early 1980s.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Paper ; No. 1007
- Klassifikation
-
Wirtschaft
Business Fluctuations; Cycles
Monetary Policy
Central Banks and Their Policies
- Thema
-
Great Moderation
New Keynesian Model
Noisy Data
Strukturwandel
Wirtschaftliche Anpassung
Geldpolitik
Transmissionsmechanismus
Gesamtwirtschaftliche Produktion
Neukeynesianische Makroökonomik
Sensitivitätsanalyse
USA
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Mayer, Eric
Scharler, Johann
- Ereignis
-
Veröffentlichung
- (wer)
-
Johannes Kepler University of Linz, Department of Economics
- (wo)
-
Linz
- (wann)
-
2010
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Mayer, Eric
- Scharler, Johann
- Johannes Kepler University of Linz, Department of Economics
Entstanden
- 2010
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