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Estimating the Implicit Inflation Target :, An Application to U.S. Monetary Policy, Daniel Leigh

Abstract
This paper proposes a new method of estimating the Taylor rule with a time-varying implicit inflation target and a time-varying natural rate of interest. The inflation target and the natural rate are modeled as random walks and are estimated using maximum likelihood and the Kalman filter. I apply this method to U.S. monetary policy over the past 25 years and find considerable time variation in the implicit target, confirming hypotheses about "opportunistic disinflation" and the recent "deflation scare."
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. METHODOLOGY""; ""III. DATA""; ""IV. RESULTS""; ""V. ROBUSTNESS ANALYSIS""; ""VI. CONCLUSION""; ""THE NATURAL RATE OF INTEREST""; ""REFERENCES""
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (25 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781283512527

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