The meta Taylor rule

We characterise U.S. monetary policy within a generalized Taylor rule framework that accommodates uncertainties about the duration of policy regimes and the specification of the rule, in addition to the standard parameter and stochastic uncertainties inherent in traditional Taylor rule analysis. Our...

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Main Authors: Lee, Kevin, Morley, James, Shields, Kalvinder
Format: Article
Published: Wiley 2015
Subjects:
Online Access:https://eprints.nottingham.ac.uk/29936/
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author Lee, Kevin
Morley, James
Shields, Kalvinder
author_facet Lee, Kevin
Morley, James
Shields, Kalvinder
author_sort Lee, Kevin
building Nottingham Research Data Repository
collection Online Access
description We characterise U.S. monetary policy within a generalized Taylor rule framework that accommodates uncertainties about the duration of policy regimes and the specification of the rule, in addition to the standard parameter and stochastic uncertainties inherent in traditional Taylor rule analysis. Our approach involves estimation and inference based on Taylor rules obtained through standard linear regression methods, but combined using Bayesian model averaging techniques. Employing data that were available in real time, the estimated version of the 'meta' Taylor rule provides a flexible but compelling characterisation of monetary policy in the United States over the last forty years.
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spelling nottingham-299362020-05-04T17:00:21Z https://eprints.nottingham.ac.uk/29936/ The meta Taylor rule Lee, Kevin Morley, James Shields, Kalvinder We characterise U.S. monetary policy within a generalized Taylor rule framework that accommodates uncertainties about the duration of policy regimes and the specification of the rule, in addition to the standard parameter and stochastic uncertainties inherent in traditional Taylor rule analysis. Our approach involves estimation and inference based on Taylor rules obtained through standard linear regression methods, but combined using Bayesian model averaging techniques. Employing data that were available in real time, the estimated version of the 'meta' Taylor rule provides a flexible but compelling characterisation of monetary policy in the United States over the last forty years. Wiley 2015-01-23 Article PeerReviewed Lee, Kevin, Morley, James and Shields, Kalvinder (2015) The meta Taylor rule. Journal of Money, Credit and Banking, 47 (1). pp. 73-98. ISSN 0022-2879 Taylor rule ; real-time policy ; model uncertainty ; U.S. interest rates http://onlinelibrary.wiley.com/enhanced/doi/10.1111/jmcb.12169 doi:10.1111/jmcb.12169 doi:10.1111/jmcb.12169
spellingShingle Taylor rule ; real-time policy ; model uncertainty ; U.S. interest rates
Lee, Kevin
Morley, James
Shields, Kalvinder
The meta Taylor rule
title The meta Taylor rule
title_full The meta Taylor rule
title_fullStr The meta Taylor rule
title_full_unstemmed The meta Taylor rule
title_short The meta Taylor rule
title_sort meta taylor rule
topic Taylor rule ; real-time policy ; model uncertainty ; U.S. interest rates
url https://eprints.nottingham.ac.uk/29936/
https://eprints.nottingham.ac.uk/29936/
https://eprints.nottingham.ac.uk/29936/