Can the Taylor Rule be a Good Guidance for Policy? The Case of 2001-2008 Real Estate Bubble

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F44555601%3A13510%2F16%3A43887795" target="_blank" >RIV/44555601:13510/16:43887795 - isvavai.cz</a>

Výsledek na webu

<a href="http://dx.doi.org/10.18267/j.pep.573" target="_blank" >http://dx.doi.org/10.18267/j.pep.573</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.18267/j.pep.573" target="_blank" >10.18267/j.pep.573</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Can the Taylor Rule be a Good Guidance for Policy? The Case of 2001-2008 Real Estate Bubble

Popis výsledku v původním jazyce

John Taylor (2009) argues that if the Federal Reserve had followed his famous monetary-policy rule, the severe recession that resulted from the real estate bubble could have been avoided. While one may agree with Taylor's empirical analysis and accept his demonstration that his proposed rule would lead to a more stable economic environment, it is unclear whether central banks are capable of avoiding bubbles by simply following the Taylor rule. One can construct various Taylor rules from the data. Some of those rules model what the Federal Reserve actually did. Following the specific type of Taylor rule recommended by John Taylor would in fact amount to a better monetary policy, but only because it calls for setting interest rates higher. In the second section, we introduce Taylor rules. In the third section, we apply these rules to monetary policy since 2001. The fourth section situates the Taylor rule in the Wicksellian Framework of interest rates and macroeconomic stability. In the fifth section, we discuss the effects of policy rules on macroeconomic stability.

Název v anglickém jazyce

Can the Taylor Rule be a Good Guidance for Policy? The Case of 2001-2008 Real Estate Bubble

Popis výsledku anglicky

John Taylor (2009) argues that if the Federal Reserve had followed his famous monetary-policy rule, the severe recession that resulted from the real estate bubble could have been avoided. While one may agree with Taylor's empirical analysis and accept his demonstration that his proposed rule would lead to a more stable economic environment, it is unclear whether central banks are capable of avoiding bubbles by simply following the Taylor rule. One can construct various Taylor rules from the data. Some of those rules model what the Federal Reserve actually did. Following the specific type of Taylor rule recommended by John Taylor would in fact amount to a better monetary policy, but only because it calls for setting interest rates higher. In the second section, we introduce Taylor rules. In the third section, we apply these rules to monetary policy since 2001. The fourth section situates the Taylor rule in the Wicksellian Framework of interest rates and macroeconomic stability. In the fifth section, we discuss the effects of policy rules on macroeconomic stability.

Druh

J_x - Nezařazeno - Článek v odborném periodiku (Jimp, Jsc a Jost)

CEP obor

AH - Ekonomie

OECD FORD obor

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Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2016

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Prague Economic Papers

ISSN

1210-0455

e-ISSN

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Svazek periodika

25

Číslo periodika v rámci svazku

4

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

15

Strana od-do

381-395

Kód UT WoS článku

000382808500001

EID výsledku v databázi Scopus

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