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Deconstructing the Art of Central Banking, Tamim Bayoumi, Silvia Sgherri

Contributor
Abstract
This paper proposes a markedly different transmission mechanism from monetary policy to the macroeconomy, focusing on how policy changes nominal inertia in the Phillips curve. Using recent theoretical developments, we examine the properties of a small, estimated U.S. monetary model distinguishing four monetary regimes employed since the late 1950s. We find that changes in monetary policy are linked to shifts in nominal inertia, and that these improvements in supply-side flexibility are indeed the main channel through which monetary policy lowers the volatility of inflation and, even more importantly, output
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. STYLIZED FACTS""; ""III. THE THEORETICAL MODEL""; ""IV. ESTIMATION RESULTS""; ""V. SIMULATION RESULTS""; ""VI. CONCLUSIONS AND POLICY IMPLICATIONS""; ""REFERENCES""
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (36 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781451905304

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