Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/72004
Authors: 
Ball, Laurence
Tchaidze, Robert R.
Year of Publication: 
2001
Series/Report no.: 
Working Papers, The Johns Hopkins University, Department of Economics 465
Abstract: 
This paper seeks to understand the behavior of Greenspan’s Federal Reserve in the late 1990s Some authors suggest that the Fed followed a simple Taylor rule while others argue that it deviated from such a rule because it recognized that the New Economy permitted an easing of policy We find that a Taylor rule based on inflation and unemployment does break down in the late 1990s However the Fed’s behavior appears stable once one accounts for the falling NAIRU of the period A rule based on inflation and the deviation of unemployment from the NAIRU captures the Fed’s behavior through the entire period from 1987 to 2000
Document Type: 
Working Paper

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