Stop-Go Monetary Policy
We propose and estimate several discrete choice models of monetary policy decision-making that feature time-varying inertia. The models permit us to account for three stylized facts characterizing monetary policymaking in the United States: (1) target interest rates are gradually adjusted in small d...
| Main Authors: | , , , |
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| Format: | Journal Article |
| Published: |
2019
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| Online Access: | http://hdl.handle.net/20.500.11937/75377 |
| _version_ | 1848763475262701568 |
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| author | Chappell, H. Harris, Mark McGregor, R. Spencer, C. |
| author_facet | Chappell, H. Harris, Mark McGregor, R. Spencer, C. |
| author_sort | Chappell, H. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | We propose and estimate several discrete choice models of monetary policy decision-making that feature time-varying inertia. The models permit us to account for three stylized facts characterizing monetary policymaking in the United States: (1) target interest rates are gradually adjusted in small discrete movements, (2) there are some long stretches of time in which rates are repeatedly moved, and (3) there are other long stretches in which the policy rate does not change. The models are used to account for delayed monetary policy responses to the recession of 2001 and to the housing-driven expansion of 2003–2006. (JEL E52, E58, E65). |
| first_indexed | 2025-11-14T11:04:03Z |
| format | Journal Article |
| id | curtin-20.500.11937-75377 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T11:04:03Z |
| publishDate | 2019 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-753772019-05-23T03:42:07Z Stop-Go Monetary Policy Chappell, H. Harris, Mark McGregor, R. Spencer, C. We propose and estimate several discrete choice models of monetary policy decision-making that feature time-varying inertia. The models permit us to account for three stylized facts characterizing monetary policymaking in the United States: (1) target interest rates are gradually adjusted in small discrete movements, (2) there are some long stretches of time in which rates are repeatedly moved, and (3) there are other long stretches in which the policy rate does not change. The models are used to account for delayed monetary policy responses to the recession of 2001 and to the housing-driven expansion of 2003–2006. (JEL E52, E58, E65). 2019 Journal Article http://hdl.handle.net/20.500.11937/75377 10.1111/ecin.12787 restricted |
| spellingShingle | Chappell, H. Harris, Mark McGregor, R. Spencer, C. Stop-Go Monetary Policy |
| title | Stop-Go Monetary Policy |
| title_full | Stop-Go Monetary Policy |
| title_fullStr | Stop-Go Monetary Policy |
| title_full_unstemmed | Stop-Go Monetary Policy |
| title_short | Stop-Go Monetary Policy |
| title_sort | stop-go monetary policy |
| url | http://hdl.handle.net/20.500.11937/75377 |