STOP‐GO MONETARY POLICY.

We propose and estimate several discrete choice models of monetary policy decision‐making that feature time‐varying inertia. The models permit us to account for three stylized facts characterizing monetary policymaking in the United States: (1) target interest rates are gradually adjusted in small d...

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Publicado en:Economic Inquiry Vol. 57; no. 3; pp. 1698 - 1718
Autores principales: Chappell, Henry W., Harris, Mark N., McGregor, Rob Roy, Spencer, Christopher
Formato: Artículo
Publicado: Wiley-Blackwell Jul2019
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: STOP‐GO MONETARY POLICY.
      aug:
        au:
          Chappell, Henry W.
          Harris, Mark N.
          McGregor, Rob Roy
          Spencer, Christopher
        affil:
          Professor, Department of Economics, American University of Sharjah, Sharjah United Arab Emirates
          Professor, School of Economics, Finance and Property, Curtin University, Perth WA 6102, Australia
          Professor of Economics, Department of Economics, University of North Carolina at Charlotte, Charlotte NC 28223
          Senior Lecturer, School of Business and Economics, Loughborough University, Loughborough LE11 3TU, UK
      su:
        United States
        Recessions
        Housing
        Monetary policy
        Interest rates
        Discrete choice models
      sug:
        subj:
          Recessions
          Housing
          United States
          Other Community Housing Services
          Monetary policy
          Interest rates
          Discrete choice models
      ab: We propose and estimate several discrete choice models of monetary policy decision‐making that feature time‐varying inertia. The models permit us to account for three stylized facts characterizing monetary policymaking in the United States: (1) target interest rates are gradually adjusted in small discrete movements, (2) there are some long stretches of time in which rates are repeatedly moved, and (3) there are other long stretches in which the policy rate does not change. The models are used to account for delayed monetary policy responses to the recession of 2001 and to the housing‐driven expansion of 2003–2006.
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    language: English
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