What if the Fed Had Been an Inflation Nutter?
7 Pages Posted: 3 Jun 2009 Last revised: 11 Jun 2013
Date Written: December 18, 2003
Abstract
A structural rational expectations model of U.S. monetary policy is used to make a counterfactual experiment of a strongly inflation averse Federal Reserve Bank. Results for U.S. interest rates, output, and inflation over 1965-1999 are discussed.
Keywords: optimal monetary policy, rational expectations, Kalman filter
JEL Classification: E31, E43, E52
Suggested Citation: Suggested Citation
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