The Phillips curve and US monetary policy: what the FOMC transcripts tell us.

The Phillips curve framework, which includes the output gap and natural rate hypothesis, plays a central role in the canonical macroeconomic model used in analyses of monetary policy. It is now well understood that real-time data must be used to evaluate historical monetary policy. We believe that i...

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Publicado en:Oxford Economic Papers Vol. 64; no. 2; pp. 197 - 217
Autores principales: Meade, Ellen E., Thornton, Daniel L.
Formato: Artículo
Publicado: Oxford University Press / USA Apr2012
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      pub: Oxford University Press / USA
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        atl: The Phillips curve and US monetary policy: what the FOMC transcripts tell us.
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          Meade, Ellen E.
          Thornton, Daniel L.
        affil:
          *Department of Economics, American University, Washington DC 20016; e-mail: meade@american.edu
          †Federal Reserve Bank of St. Louis
      su:
        United States
        Macroeconomics
        Economic models
        Economic policy
        Phillips curve
        Monetary policy
      sug:
        subj:
          Macroeconomics
          Economic models
          Economic policy
          United States
          Phillips curve
          Monetary policy
      ab: The Phillips curve framework, which includes the output gap and natural rate hypothesis, plays a central role in the canonical macroeconomic model used in analyses of monetary policy. It is now well understood that real-time data must be used to evaluate historical monetary policy. We believe that it is equally important that macroeconomic models used to evaluate historical monetary policy reflect the framework that policymakers used to formulate that policy. To that end, we use the Federal Open Market Committee (FOMC) transcripts to examine the role that the Phillips curve framework played in Fed policymaking from 1979 through 2003. The FOMC's transcripts allow us to trace the evolution in policymakers’ discussion of the Phillips curve framework over time. Our analysis suggests that the Phillips curve was much less central to the formulation and implementation of US monetary policy than it is in models commonly used to evaluate that policy.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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