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Monetary Policy Rules and Financial Stability

McCallum, Bennett T. - 1994

This paper investigates empirically the possibility that a central bank could adhere to a macro-oriented monetary policy rule while also providing lender-of-last-resort services to the financial system. The method considered involves smoothing week-to-week movements of an interest rate...

Persistent link: https://www.econbiz.de/10012474236

Theoretical Issues Pertaining to Monetary Unions

McCallum, Bennett T. - 1999

fully operational. A second relevant body of theory is that pertaining to currency crises. Formal models clarify various … recently- developed fiscal theory of price level determination, which if valid would have major implications for monetary …-fiscal arrangements in currency unions. This theory does not contend that fiscal behavior drives an accommodative monetary authority, but …

Persistent link: https://www.econbiz.de/10012471392

Could A Monetary Base Rule Have Prevented the Great Depression?

McCallum, Bennett T. - 1989

This paper continues an ongoing investigation of the properties of a specific, quantitative, and operational rule for the conduct of monetary policy, a rule that specifies settings of the monetary base that are designed to keep nominal GNP growing smoothly at a noninflationary rate. Whereas...

Persistent link: https://www.econbiz.de/10012475879

Inflation Targeting and the Liquidity Trap

McCallum, Bennett T. - 2001

This paper considers whether 'liquidity trap' issues have important bearing on the desirability of inflation targeting as a strategy for monetary policy. From a theoretical perspective, it has been suggested that 'expectation trap' and 'indeterminacy' dangers are created by variants of inflation...

Persistent link: https://www.econbiz.de/10012470499

Monetary Policy for an Open Economy : An Alternative Framework with Optimizing Agents and Sticky Prices

McCallum, Bennett T. - 2001

The new open-economy macroeconomics' seeks to provide an improved basis for monetary and exchange-rate policy through the construction of open-economy models that feature rational expectations, optimizing agents, and slowly adjusting prices of goods. This paper promotes an alternative approach...

Persistent link: https://www.econbiz.de/10012470551

Monetary Policy Analysis in Models Without Money

McCallum, Bennett T. - 2001

The following arguments are developed: (i) models without monetary aggregates do not imply that inflation is a non-monetary phenomenon and are not necessarily non-monetary models; (ii) theoretical considerations suggest that such models are misspecified, but the quantitative significance of this...

Persistent link: https://www.econbiz.de/10012470552

The Present and Future of Monetary Policy Rules

McCallum, Bennett T. - 2000

To consider the prospects, looking 20-30 years into the future, for monetary policymaking in accordance with policy rules, one must evaluate their present importance. That requires some definition of what constitutes rule-based monetary policy in practice, since no actual central bank will ever...

Persistent link: https://www.econbiz.de/10012470821

Timeless Perspectives vs. Discretionary Monetary Policy In Forward-Looking Models

McCallum, Bennett T. - 2000

This paper reviews the distinction between the timeless perspective and discretionary modes of monetary policymaking, the former representing rule-based policy as recently formalized by Woodford (1999b). In models with forward-looking expectations, this distinction is greater than in the models...

Persistent link: https://www.econbiz.de/10012470822

Nominal Income Targeting in an Open-Economy Optimizing Model

McCallum, Bennett T. - 2000

conducting analysis in a macroeconomic model that is designed to respect both neoclassical theory and empirical regularities …

Persistent link: https://www.econbiz.de/10012471031

Theoretical Analysis Regarding a Zero Lower Bound on Nominal Interest Rates

McCallum, Bennett T. - 2000

This paper explores several issues concerning a possible zero lower bound (ZLB) including its theoretical rationale; the magnitude of effects of low sustained inflation on real interest rates; the validity of analyzing monetary policy in models with no monetary variables; and the dynamic...

Persistent link: https://www.econbiz.de/10012471090