The Evolution of Macro Models at the Federal Reserve Board&#x0D;

Brayton, Flint; Tryon, Ralph W.; Williams, John C.

doi:10.2139/ssrn.38122

Cited by 49 publications

(49 citation statements)

References 20 publications

(4 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Taylor's prescription for monetary policy was a 0.5 weight on inflation which would correspond to a 1.5 coefficient in the above equation. The coefficient on the GDP gap is slightly below his original weight of 0.5 and significantly below the weight of 1.0 suggested by Brayton [1997]. A joint (Wald) test of the hypothesis that both coefficients match Taylor's prescription cannot be rejected at any reasonable significance level.…”

Section: Resultsmentioning

confidence: 64%

International Monetary Policy: A Global Taylor Rule

Huston

Spencer

2005

Int Adv Econ Res

View full text Add to dashboard Cite

John Taylor’s rule for setting interest rates provides a framework for studying the global monetary policy generated by individual countries pursing their own policy goals. The study reflects the global nature of monetary policy by modeling an aggregate short-term interest rate as a function of measures of worldwide inflation and the GDP gap. Multiple specifications are estimated to correspond to past studies of the U.S. relationships between these variables. The authors find that Taylor rule is a useful tool for characterizing the global monetary environment as his equation provides a good fit to the data in every specification explored by the authors. However, the international response to inflation is slightly less robust despite claims of inflation targeting by the bulk of the larger economies in the sample. Copyright International Atlantic Economic Society 2005F33,

show abstract

Section: Resultsmentioning

confidence: 64%

International Monetary Policy: A Global Taylor Rule

Huston

Spencer

2005

Int Adv Econ Res

View full text Add to dashboard Cite

show abstract

“…If we suppose * 2 r = , * 2 π = , 0.5 g = and 0.5 h = , the equation above becomes the original form of the policy rule advanced by Taylor (1993). Brayton et al (1997) set 1 g = and 0.5 h = , and conducted an empirical research on the Taylor rule again. According to different parameter values of g and h , we can set four rules.…”

Section: The Historical Analysis Of Taylor Rule In Chinamentioning

confidence: 99%

The Taylor rules and macroeconomic fluctuation in China: 1994–2006

Li¹,

Wang²

2010

Front. Econ. China

View full text Add to dashboard Cite

show abstract

“…Forward-looking behavior, however, is more pervasive in FRB/US and JEM than in the AWM: in the first two models, the key behavioral equations are derived from optimization problems in which costs of deviating from equilibrium are weighed against polynomial adjustment costs-that is, costs of adjusting the levels and higher-order differences in variables. Brayton et al (1997) contains a discussion of the use of polynomial adjustment costs in FRB/US and Fujiwara et al (2005) discuss their use in JEM. Important areas of explicit forwardlooking behavior in FRB/US and JEM include consumer and business investment spending, and wage and price setting.…”

Section: Models: Similarities and Differencesmentioning

confidence: 99%

“…This paper and the three that follow consider the effectiveness of a number of proposals for reducing the consequences of the zero lower bound on nominal interest rates using simulations of the policy models of three major central banks: the Bank of Japan's JEM model (Fujiwara et al, 2005); the European Central Bank's Area-Wide Model (Fagan et al, 2001) and the Federal Reserve's FRB/US model (Brayton et al, 1997). Our goal is to look for policies that work well across a number of models.…”

Section: Introductionmentioning

confidence: 99%