@techreport{Jovanovic2012Empirical,
abstract = {During financial crises central banks usually decrease interest rates in order to reduce financial uncertainty. This behavior increases inflation risk. The trade-off between inflation and uncertainty stabilization can be modeled by the generalized Taylor rule, which describes inflation sensitivity as a function of financial uncertainty instead of a constant parameter. Based on the GMM-estimation of the generalized approach I confirm the suggested uncertainty-dependent inflation sensitivity of the Fed. Prolonged deviations from the Taylor principle are not evident. This implies that the Fed does not deemphasize inflation stabilization in favor of uncertainty stabilization - especially during the peak of the latest sub-prime crisis. --  -- \"{U}blicherweise senken Zentralbanken ihren Leitzins w\"{a}hrend Finanzmarktkrisen, um Unsicherheiten im Finanzsystem zu reduzieren. Dieses Verhalten birgt das Risiko steigender Inflation. Aufgrund US amerikanischer Daten kann empirisch gezeigt werden, dass die Fed in Abh\"{a}ngigkeit von der gegenw\"{a}rtigen Unsicherheit des Finanzsystems variabel auf Inflationserwartungen reagiert. GMM-Sch\"{a}tzergebnisse der verallgemeinerten Taylor-Regel deuten darauf hin, dass die Fed w\"{a}hrend der vergangenen Sub-Prime Krise zwar resolut gegen Finanzmarktunsicherheiten agiert, wobei eine andauernde Missachtung des Taylor-Prinzips nicht erkennbar ist.},
address = {Essen},
author = {Mario Jovanovic},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
doi = {10.4419/86788384},
isbn = {978-3-86788-384-9},
keywords = {E44; E58; 330; Financial instability; time-varying inflation sensitivity},
language = {eng},
number = {334},
publisher = {RWI},
title = {Empirical evidence on the generalized Taylor principle},
type = {Ruhr Economic Papers},
url = {http://hdl.handle.net/10419/61463},
year = {2012}
}
