Article ID Journal Published Year Pages File Type
10488003 Journal of Financial Stability 2013 8 Pages PDF
Abstract
► The Taylor rule breaks down after 2007 as the estimated response to inflation falls markedly and becomes insignificant. ► Monetary policy reflects a “financial crisis” regime in which policy rates respond strongly to financial stress and a “no-crisis” Taylor rule regime. ► Our analysis highlights the dilemma faced by policymakers in 2010-11.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics, Econometrics and Finance (General)
Authors
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