Article ID Journal Published Year Pages File Type
5054894 Economic Modelling 2013 11 Pages PDF
Abstract
► We uncover the Fed's behavior since 1982 by comparing fully identified models. ► The Fed's behavior over this period was shown to optimize social welfare. ► But this can be confused with an 'interest-rate-smoothed' Taylor Rule. ► The latter, while being able to mimic the former, is a statistical artifact.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Taylor Rule or optimal timeless policy? Reconsidering the Fed's behavior since 1982
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