Fabio Ghironi
Department of Economics
Boston College
Administration Building 473
Chestnut Hill, MA 02467-3806
Phone: 1-617-552-3686
Fax: 1-617-552-2308
E-mail: Fabio.Ghironi@bc.edu
Web page: http://www2.bc.edu/~ghironi
This version: January 27, 2003
This web page is an outgrowth of the syllabus of the second-year, Ph.D. course in Monetary Economics that I taught at Boston College in the Fall of 2001. That syllabus contained an extensive reading list on several topics in monetary economics as well as a set of useful links. It was meant to be a resource for my students. It quickly became a resource also for myself and for a number of other scholars outside the Boston College community, several of whom honored me with their compliments or by including links to my syllabus in their web page.
This web page contains an updated version of the reading list in the original syllabus and of the links. Boston College students who are taking my second-year, Ph.D. course on "Macroeconomic Policy in Closed and Open Economies" must use this page in conjunction with the course syllabus.
I hope you will find this page as useful as it has been for me. Comments
are welcome, as well as suggestions of additional links for inclusion and
the indication of links that no longer work and/or of references that should
be updated. E-mail me at Fabio.Ghironi@bc.edu.
Readings on Macroeconomic Policy in Closed and Open Economies
Four published books provide extensive surveys of several topics in this page:
Bernanke, Ben S., Thomas Laubach, Frederic S. Mishkin, and Adam S. Posen,
1999: Inflation Targeting: Lessons from the International Experience,
Princeton: Princeton University Press.
Mankiw, N. Gregory (ed.), 1994: Monetary Policy, Chicago: University
of Chicago Press.
Taylor, John B. (ed.), 1999: Monetary Policy Rules, Chicago:
University of Chicago Press.
Walsh, Carl E., 1998: Monetary Theory and Policy, Cambridge:
MIT Press.
Below, I refer to these books as BetAL99, MANKIW94, TAYLOR99, and WALSH98, respectively. In addition, I mention other volumes in various places. Particularly important is Michael Woodford's manuscript on Interest and Prices: Foundations of a Theory of Monetary Policy (forthcoming, Princeton University Press).
Following is an incomplete list of papers on the topics mentioned in the table above. Papers that are highlighted by writing the name of the author(s) in boldface green fonts are those among which my students can choose for their referee report exercises.
The list includes links to downloadable files for a number of papers. You should be able to access several of those published in journals through JSTOR or RePec. If you have the proper subscriptions, you should also be able to access papers published in the Carnegie-Rochester Conference Series on Public Policy, the Journal of Monetary Economics, and the Journal of International Economics from the journals' web sites. (I suggest you browse recent volumes for additional readings that are not listed below.) For some published papers, I included links to working paper versions.
In addition to the papers in the list, John Taylor's "Monetary
Policy Rule Home Page" is an excellent reference source. It also contains
a number of interesting links.
Cooley, Thomas F., and Gary
D. Hansen (1995): "Money and the Business Cycle," in Cooley, Thomas
F. (ed.), Frontiers of Business Cycle Research, Princeton: Princeton
University Press.
Friedman, Milton (1968):
"The
Role of Monetary Policy," American Economic Review 58: 1-17
(link: JSTOR).
Goodfriend, Marvin S. (2000): "Maintaining Low Inflation:
Rationale and Reality," unpublished manuscript, Federal Reserve
Bank of Richmond.
Greenspan, Alan (1999):
"Opening
Remarks," in New Challenges for Monetary Policy, proceedings
of a symposium organized by the Federal Reserve Bank of Kansas City.
King, Mervyn (1999):
"Challenges
for Monetary Policy: New and Old," in New Challenges for
Monetary Policy, proceedings of a symposium organized by the Federal
Reserve Bank of Kansas City (with John B. Taylor's commentary
and the general
discussion).
Walsh, Carl E. (1998):
"Empirical Evidence on Money and Output," Chapter 1 in WALSH98.
Aiyagari, S. Rao, Neil Wallace, and Randall Wright
(1996): "Coexistence of Money and Interest-Bearing Securities," Journal
of Monetary Economics 37: 397-419.
Brock,
William A. (1974): "Money
and Growth: The Case of Long-Run Perfect Foresight," International
Economic Review 15: 750-777 (link: JSTOR).
Bullard, James, and Bruce D. Smith (2000): "The
Value of Inside and Outside Money," Federal Reserve Bank of St. Louis
WP 2000-027B.
Camera, Gabriele, and Dean Corbae (1999): "Money
and Price Dispersion," International Economic Review 40: 985-1008.
Camera, Gabriele, Ben Craig,
and Christopher J. Waller (2001): "Dollarization
via Currency Substitution," unpublished manuscript, Purdue University,
Federal Reserve of Cleveland, and University of Kentucky.
Camera, Gabriele, Robert R.
Reed, and Christopher J. Waller (2000): "Jack
of All Trades or Master of One? Specialization, Trade and Money," unpublished
manuscript, Purdue University and University of Kentucky (authors 2
and 3).
Cavalcanti, Ricardo de O., and Neil Wallace (1999):
"Inside and Outside Money as Alternative Media of Exchange," Journal
of Money, Credit and Banking 31: 443-457.
Friedman, Milton (1969):
"The Optimum Quantity of Money," in Friedman, Milton (ed.), The Optimum
Quantity of Money and Other Essays, Chicago: Aldine.
Kiyotaki, Nobuhiro, and Randall
Wright (1989): "On
Money as a Medium of Exchange," Journal of Political Economy
97: 927-954 (link: JSTOR).
Kiyotaki, Nobuhiro, and Randall
Wright (1993): "A
Search-Theoretic Approach to Monetary Economics," American Economic
Review 83: 63-77 (link: JSTOR).
Lagos, Ricardo, and Randall
Wright (2001): "A New Framework for Monetary Theory and Policy Analysis,"
unpublished
manuscript, New York University and University of Pennsylvania.
Lucas, Robert E., Jr.
(1982): "Interest Rates and Currency Prices in a Two-Country World," Journal
of Monetary Economics 10: 335-359.
Lucas, Robert E., Jr., and
Nancy L. Stokey (1987): "Money
and Interest in a Cash-in-advance Economy," Econometrica 55:
491-514 (link: JSTOR).
Matsuyama, Kiminori, Nobuhiro Kiyotaki, and Akihiro
Matsui (1993): "Toward
a Theory of International Currency," Review of Economic Studies
60: 283-307.
Rupert, Peter, Martin Schindler,
Andrei Schevchenko, and Randall Wright (2000): "The
Search-Theoretic Approach to Monetary Economics: A Primer," unpublished
manuscript, Federal Reserve Bank of Cleveland and University of Pennsylvania
(authors 2-4). (Note: This paper is also an excellent source of
references on this topic.)
Samuelson, Paul A.
(1958): "An
Exact Consumption-Loan Model of Interest with or without the Social Contrivance
of Money," Journal of Political Economy 66: 467-482 (link: JSTOR).
Sargent, Thomas J.
(1987): Dynamic Macroeconomic Theory, Cambridge: Harvard University
Press (chapters 4-7; see chapters 4 and 5 on MIUF and CIA models).
Sidrauski, Miguel (1967):
"Rational
Choice and Patterns of Growth in a Monetary Economy," American Economic
Review 57: 534-544 (link: JSTOR).
Svensson, Lars E. O.
(1985): "Money
and Asset Prices in a Cash-in-Advance Economy," Journal of Political
Economy 93: 919-944 (link: JSTOR).
Townsend, Robert M. (1980): "Models of Money with
Spatially Separated Agents," in Kareken, John H., and Neil Wallace (eds.),
Models
of Monetary Economies, Minneapolis: Federal Reserve Bank of Minneapolis.
Trejos, Alberto, and Randall
Wright (1995): "Search,
Bargaining, Money and Prices," Journal of Political Economy
103: 118-141 (link: JSTOR).
Trejos, Alberto, and Randall
Wright (2001): "International
Currency," Advances in Macroeconomics: Vol. 1: No. 1, Article
3.
Wallace, Neil (1998): "Short-Run
and Long-Run Effects of Changes in Money in a Random-Matching Model,"
Journal
of Political Economy 105: 1293-1307 (link: JSTOR).
Wallace, Neil (2001):
"Whither Monetary
Economics?," International Economic Review, forthcoming.
Walsh, Carl E. (1998):
"Money in a General Equilibrium Framework," Chapter 2 in WALSH98.
Walsh, Carl E. (1998):
"Money and Transactions," Chapter 3 in WALSH98.
Evidence on the Effects of Monetary Policy
Bernanke, Ben S., and Ilian
Mihov (1995): "Measuring
Monetary Policy," NBER WP 5145.
Bernanke, Ben S., and Ilian Mihov (1998): "The
Liquidity Effect and Long-Run Neutrality," NBER WP 6608.
Faust, Jon (1998): “The Robustness of Identified
VAR Conclusions About Money,” Carnegie-Rochester Conference Series on
Public Policy 49: 207-244 (with Harald Uhlig's comment, pp. 245-263).
Blanchard, Olivier, and Danny
Quah (1989): “The Dynamic Effects of Aggregate Demand and Supply
Disturbances,” American Economic Review 79: 655-673.
Christiano, Lawrence J., Martin Eichenbaum, and
Charles Evans (1996): “The Effects of Monetary Policy Shocks: Evidence
from the Flow of Funds,” Review of Economics and Statistics 78:
16-34.
Christiano, Lawrence J., Martin
Eichenbaum, and Charles Evans (1999): “Monetary
Policy Shocks: What Have We Learned and To What End?” in John B. Taylor
and Michael Woodford (eds.), Handbook of Macroeconomics, Amsterdam:
North-Holland (link: L. Christiano's web page).
Cochrane, John H. (1998): "What
Do the VARs Mean? Measuring the Output Effects of Monetary Policy,"
Journal
of Monetary Economics 41: 277-300.
Eichenbaum, Martin
(1992): "Comments: 'Interpreting the Macroeconomic Time Series Facts: The
Effects of Monetary Policy' by Christopher Sims,” European Economic
Review 36: 1001-1011.
Faust, Jon, and Eric Leeper (1997): "When Do Long-Run
Identifying Restrictions Give Reliable Results?" Journal of Business
Economics and Statistics 15: 345-354.
Gordon, David, and Eric Leeper (1994): "The Dynamic
Impacts of Monetary Policy: An Exercise in Tentative Identification," Journal
of Political Economy 102: 1228-1247.
Ireland, Peter N. (1999):
"A Method for Taking Models
to the Data," Boston College Economics Department WP 421.
Leeper, Eric M., Christopher
A. Sims, and Tao Zha (1996): "What
Does Monetary Policy Do?" Brookings Papers on Economic Activity
2: 1-63 (with Ben S. Bernanke's discussion, pp. 69-73; link: C.A. Sims'
web page).
Mankiw, N. Gregory (2000): "The
Inexorable and Mysterious Tradeoff Between Inflation and Unemployment,"
NBER WP 7884.
McCallum, Bennett T. (1999): "Analysis
of the Monetary Transmission Mechanism: Methodological Issues," unpublished
manuscript, Carnegie Mellon University.
Romer, Christina D., and David H. Romer (1989):
"Does Monetary Policy Matter?
A New Test in the Spirit of Friedman and Schwartz," in Olivier J. Blanchard
and Stanley Fischer (eds.), NBER Macroeconomics Annual 1989, Cambridge:
MIT Press (link: NBER WP version).
Romer, Christina D., and David H. Romer (1990):
"New Evidence on the Monetary
Transmission Mechanism," Brookings papers on Economic Activity 1: 149-198
(link: NBER WP version).
Rudebusch, Glenn (1997): "Do Measures of Monetary
Policy in a VAR Make Sense?" Brookings Papers on Economic Activity
2: ??? (with Christopher A. Sims' discussion;
link: C.A. Sims' web page).
Sims, Christopher A.
(1972): "Money,
Income and Causality," American Economic Review 62: 540-552.
Sims, Christopher A. (1980): “Macroeconomics and
Reality,” Econometrica 48: 1-48.
Sims, Christopher A.
(1992): “Interpreting the Macroeconomic Time Series Facts: The Effects
of Monetary Policy,” European Economic Review 36: 975-1000.
Sims, Christopher A., and Tao Zha (1996): "Does
Monetary Policy Generate Recessions?" unpublished manuscript,
Princeton University and Federal Reserve Bank of Atlanta.
Strongin, S. (1995): “The Identification of Monetary
Policy Disturbances: Explaining the Liquidity Puzzle,” Journal of Monetary
Economics 35: 463-497.
Uhlig, Harald (2001):
“What
Are the Effects of Monetary Policy? Results from an Agnostic Identification
Procedure,” unpublished manuscript, Humboldt University.
Money and Output: Real Effects of Monetary Policy through Price Stickiness
I strongly recommend the following background reading on the topic of this section: David Romer, "Microeconomic Foundations of Incomplete Nominal Adjustment," Chapter 6 in Advanced Macroeconomics, New York: McGraw-Hill, 1996.
Blanchard, Olivier J., and Nobuhiro Kiyotaki (1983):
"Monopolistic Competition and the Effects of Aggregate Demand," American
Economic Review 77: 647-666.
Blinder, Alan S. (1994): "On Sticky Prices: Academic
Theories Meet the Real World," in MANKIW94 (with Olivier J. Blanchard's
comment).
Calvo, Guillermo A. (1983): "Staggered Prices in
a Utility Maximizing Framework," Journal of Monetary Economics 12:
383-398.
Caplin, Andrew, and John Leahy (1991): "State-Dependent
Pricing and the Dynamics of Money and Output," Quarterly Journal of
Economics 106: 683-708.
Caplin, Andrew, and John Leahy (1997): "Aggregation
and Optimization with State-Dependent Pricing," Econometrica 65:
601-625.
Caplin, Andrew, and Daniel Spulber (1987): "Menu
Costs and the Neutrality of Money, " Quarterly Journal of Economics
102: 703-725.
Chari, V. V., Patrick J. Kehoe,
and Ellen R. McGrattan (2000): "Sticky
price Models of the Business Cycle: Can the Contract Multiplier Solve the
Persistence Problem?" Econometrica 68: 1151-1179 (link: Federal
Reserve Bank of Minneapolis Staff Report version).
Christiano, Lawrence J.,
Martin Eichenbaum, and Charles Evans (2001): "Nominal
Rigidities and the Dynamic Effects of a Shock to Monetary Policy,"
NBER WP 8403.
Dotsey, Michael, Robert G.
King, and Alexander L. Wolman (1999): "State Dependent Pricing and
the General Equilibrium Dynamics of Money and Output," Quarterly Journal
of Economics 114: 655-690.
Fuhrer, Jeff, and George Moore
(1995): "Inflation Persistence," Quarterly Journal of Economics
110: 127-159.
Galí, Jordi, and Mark Gertler (1999): "Inflation
Dynamics: A Structural Econometric Analysis," Journal of Monetary
Economics 44: 195-222.
Goodfriend, Marvin S., and
Robert G. King (1997): "The
New Neoclassical Synthesis and the Role of Monetary Policy," in Ben
S. Bernanke and Julio J. Rotemberg (eds.), NBER Macroeconomics Annual
1997, Cambridge: MIT Press (with Olivier J. Blanchard's comments; link:
Federal Reserve of Richmond WP version).
Hairault, Jean-Olivier and
Franck Portier (1993): "Money, New-Keynesian Macroeconomics and
the Business Cycle," European Economic Review 37: 1533-1568.
Ireland, Peter N.
(2000): "Money’s Role in the
Monetary Business Cycle," Boston College Economics Department WP 458.
Ireland, Peter N. (2001):
"Sticky-Price Models of the
Business Cycle: Specification and Stability," Journal of Monetary
Economics 47: 3-18 (link: BC WP version).
Ireland, Peter N.
(2001): "Endogenous Money
or Sticky Prices?," Boston College Economics Department WP 499.
Lucas, Robert E., Jr. (1972): "Expectations and
the Neutrality of Money," Journal of Economic Theory 4: 103-124.
Mankiw, N. Gregory, and Ricardo
Reis (2001): "Sticky
Information versus Sticky Prices: A Proposal to Replace the New Keynesian
Phillips Curve," NBER WP 8290.
McCallum, Bennett T., and Edward Nelson (1999):
"An Optimizing
IS-LM Specification for Monetary Policy ad Business Cycle Analysis,"
Journal
of Money, Credit, and Banking 31: 296-316 (link: NBER WP version).
Nelson, Edward (1998):
"Sluggish Inflation and Optimizing Models of the Business Cycle," Journal
of Monetary Economics 42: 303-322.
Roberts, John M. (2001): "How
Well Does the New Keynesian Sticky-Price Model Fit the Data?" Finance
and Economics Discussion Series, Staff WP 2001-13, Board of Governors of
the Federal Reserve System.
Rotemberg, Julio J.
(1982): "Monopolistic Price Adjustment and Aggregate Output," Review
of Economic Studies 49: 517-531.
Rotemberg, Julio J. (1987): "The New Keynesian Microfoundations,"
in NBER Macroeconomics Annual 1987, Cambridge: MIT Press.
Rotemberg, Julio J., and Michael Woodford (1999):
"The Cyclical Behavior of
Prices and Costs," in John B. Taylor and Michael Woodford (eds.), Handbook
of Macroeconomics, Amsterdam: Elsevier Science (link: NBER WP version).
Sbordone, Argia M.
(1998): "Prices
and Unit Labor Costs: A New Test of Price Stickiness," unpublished
manuscript, Rutgers University.
Sbordone, Argia M.
(2001): "An
Optimizing Model of U.S. Wage and Price Dynamics," unpublished manuscript,
Rutgers University.
Sims, Christopher A. (1998): "Stickiness,"
Carnegie-Rochester
Conference Series on Public Policy 49: 317-356 (link: C. A. Sims' web
page).
Taylor, John B. (1980):
"Aggregate Dynamics and Staggered Contracts," Journal of Political Economy
88: 1-24.
Taylor, John B. (1999): "Staggered
Price and Wage Setting in Macroeconomics," in John B. Taylor and Michael
Woodford (eds.), Handbook of Macroeconomics, Amsterdam: Elsevier
Science (link: NBER WP version).
Walsh, Carl E. (1998): "Money and Output in the
Short Run," Chapter 5 in WALSH98.
Woodford, Michael (2001):
"Optimizing Models
with Nominal Rigidities," Chapter 3 in Interest and Prices,
unpublished
manuscript, Princeton University.
Yun, Tack (1996): "Nominal Price Rigidity, Money
Supply Endogeneity, and Business Cycles," Journal of Monetary Economics
37: 345-370.
Limited Participation vs. Sticky Prices
Christiano, Lawrence J., Martin
Eichenbaum, and Charles Evans (1997): "Sticky
Price and Limited Participation Models of Money: A Comparison," European
Economic Review 41: 1201-1249 (link: NBER WP version).
Cooley, Thomas F., and Vincenzo Quadrini (1999):
"A Neoclassical
Model of the Phillips Curve Relation," Journal of Monetary Economics
44: 165-193 (link: V. Quadrini's web page).
Hendry, Scott, and Guang-Jia Zhang (2001): "Liquidity
Effects and Market Frictions," Journal of Macroeconomics 23: 153-176.
Keen, Benjamin D. (2001): "In Search of the Liquidity
Effect in a Modern Monetary Model," unpublished manuscript, University
of Virginia.
King, Robert G., and Mark W. Watson (1996): "Money,
Prices, Interest Rates, and the Business Cycle," Review of Economics
and Statistics 78: 35-53.
Papadopoulou, Niki X. (2001):
"A Model with Sticky Prices and Limited Participation," unpublished
manuscript, Boston College.
Bernanke, Ben S., and Mark Gertler (1989): "Agency
Costs, Net Worth, and Business Fluctuations," American Economic Review
79: 14-31 (link: JSTOR).
Bernanke, Ben S., and Mark Gertler (1995): "Inside
the Black Box: The Credit Channel of Monetary Transmission," Journal
of Economic Perspectives 9: 27-48 (link: NBER WP version).
Bernanke, Ben S., Mark Gertler, and Simon Gilchrist
(1999): "The Financial Accelerator
in a Quantitative Business Cycle Framework," in John B. Taylor and
Michael Woodford (eds.), Handbook of Macroeconomics, Amsterdam:
North-Holland (link: NBER WP version).
Carlstrom, Charles T., and Timothy S. Fuerst (1997):
"Agency
Costs, Net Worth, and Business Cycle Fluctuations: A Computable General
Equilibrium Analysis," American Economic Review 87: 893-910
(link: JSTOR).
Walsh, Carl E. (1998):
"The Credit Channel of Monetary Policy," Chapter 7 in WALSH98.
Time Inconsistency, Rules vs. Discretion, Transparency
Albanesi, Stefania, V. V.
Chari, and Lawrence J. Christiano (2000):
"Expectation
Traps and Monetary Policy" unpublished manuscript, Northwestern
University and University of Minnesota.
Albanesi, Stefania, V. V.
Chari, and Lawrence J. Christiano (2001): "How
Severe Is the Time Inconsistency Problem in Monetary Policy?" unpublished
manuscript, Northwestern University and University of Minnesota.
Barro, Robert J., and David
B. Gordon (1983a): "A
Positive Theory of Monetary Policy in a Natural-Rate Model," Journal
of Political Economy 91(4): 589-610 (link: NBER WP version).
Barro, Robert J., and David
B. Gordon (1983b): "Rules,
Discretion, and Reputation in a Model of Monetary Policy," Journal
of Monetary Economics 12(1): 101-121 (link: NBER WP version).
Calvo, Guillermo A. (1978): "On the Time Consistency
of Optimal Monetary Policy in a Monetary Economy," Econometrica 46(6):
1411-1428.
Chari, V. V., Lawrence J.
Christiano, and Martin Eichenbaum (1998): "Expectation
Traps and Discretion," unpublished manuscript, University of
Minnesota and Northwestern University.
Christiano, Lawrence J., and Christopher Gust (2000):
"The
Expectations Trap Hypothesis," Federal Reserve Bank of Chicago.
Clarida, Richard, Jordi Galí,
and Mark Gertler (1999): "The
Science of Monetary Policy: A New Keynesian Perspective," Journal
of Economic Literature 37: 1661-1707 (link: M. Gertler's web page).
Faust, Jon, and Lars E. O. Svensson (1998): "Transparency
and Credibility: Monetary Policy with Unobservable Goals," International
Economic Review (link: NBER WP version).
Faust, Jon, and Lars E. O. Svensson (1999): "The
Equilibrium Degree of Transparency and Control in Monetary Policy,"
Journal
of Money, Credit and Banking, forthcoming (link: NBER WP version).
Geraats, Petra
(2000): "Precommitment,
Transparency and Monetary Policy," unpublished manuscript, University
of Cambridge.
Geraats, Petra
(2001a): "Why Adopt
Transparency? The Publication of Central Bank Forecasts," ECB WP 41.
Geraats, Petra
(2001b): "Transparency
of Monetary Policy: Does the Institutional Framework Matter?" unpublished
manuscript, University of Cambridge.
Geraats, Petra
(2001c): "Central
Bank Transparency," unpublished manuscript, University of Cambridge.
Ireland, Peter N.
(1998): "Expectations, Credibility,
and Time-Consistent Monetary Policy," Boston College Economics Department
WP 425.
Ireland, Peter N. (1999):
"Does the Time-Consistency
Problem Explain the Behavior of Inflation in the United States?" Journal
of Monetary Economics 44: 279-291 (link: BC WP version).
Jensen, Henrik (1999): "Optimal
Degrees of Transparency in Monetary Policymaking," CEPR DP 2689.
Kydland, Finn E., and Edward
C. Prescott (1977): "Rules
Rather Than Discretion: The Inconsistency of Optimal Plans," Journal
of Political Economy 85(3): 473-491 (link: JSTOR).
Lucas, Robert E. (1980): "Rules, Discretion, and
the Role of the Economic Advisor," in Stanley Fisher (ed.), Rational
Expectations and Economic Policy, Chicago: University of Chicago Press.
Persson, Torsten, and Guido
Tabellini (1993): "Designing Institutions for Monetary Stability,"
Carnegie-Rochester
Conference Series on Public Policy 39.
Rogoff, Kenneth S.
(1985): "The
Optimal Degree of Commitment to an Intermediate Monetary Target," Quarterly
Journal of Economics 100: 1169-1189 (link: K. S. Rogoff's web page).
Walsh, Carl E. (1995):
"Optimal Contracts for Central Bankers," American Economic Review
85: 150-167.
Walsh, Carl E. (1998): "Discretionary Policy and
Time Inconsistency," Chapter 8 in WALSH98.
Note: An excellent treatment of this topic is also in Cukierman, Alex (1995): Central Bank Strategy, Credibility, and Independence: Theory and Evidence, Cambridge: MIT Press.
Should Central Banks Follow Friedman's Zero Interest Rate Rule?
Carlstrom, Charles T., and
Timothy S. Fuerst (1998): "A
Note on the Role of Countercyclical Monetary Policy," Journal of
Political Economy 106: 860-866 (link: JSTOR).
Cole, Harold L., and Narayana Kocherlakota (1998)
"Zero Nominal
Interest Rates: Why They're Good and How to Get Them," Federal Reserve
Bank of Minneapolis Quarterly Review 22: 2-10.
Ireland, Peter N. (1996):
"The
Role of Countercyclical Monetary Policy," Journal of Political Economy
104: 704-724 (link: JSTOR).
Ireland, Peter N.
(2000): "Implementing the
Friedman Rule," Boston College Economics Department WP 460.
Paal, Beatrix, and Bruce D. Smith (2000): "The
Suboptimality of the Friedman Rule and the Optimum Quantity of Money,"
unpublished
manuscript, Stanford University and University of Texas, Austin.
Uhlig, Harald (1999): "Should
We Be Afraid of Friedman's Rule?" Journal of the Japanese and International
Economies, forthcoming.
Williamson, Stephen D. (1996) "Sequential Markets
and the Suboptimality of the Friedman Rule," Journal of Monetary Economics
37: 549-572.
Alternative Interest Rate Rules: Introduction
McCallum, Bennett T. (1999): "Recent
Developments in the Analysis of Monetary Policy Rules," Holmer Jones
Memorial Lecture at the University of Missouri.
McCallum, Bennett T. (2000): “The
Present and Future of Monetary Policy Rules,” International Finance,
forthcoming.
Poole, William (1999): “Monetary Policy Rules?”
Review,
Federal Reserve Bank of St. Louis, Vol. 81, no. 2.
Romer, David (2000): "Keynesian
Macroeconomics Without the LM Curve," NBER WP 7461.
Taylor, John B. (1993):
"Discretion
vs. Policy Rules in Practice," Carnegie-Rochester Conference Series
on Public Policy 39: 195-214.
Taylor, John B. (1999): "A Historical Analysis of
Monetary Policy Rules," in TAYLOR99 (with Richard Clarida's comment).
Tobin, James (1998): "Monetary
Policy: Recent Theory and Practice," unpublished manuscript,
Yale University.
Walsh, Carl E. (1998):
"Monetary-Policy Operating Procedures," Chapter 9 in WALSH98.
Walsh, Carl E. (1998): "Interest Rates and Monetary
Policy," Chapter 10 in WALSH98.
Blanchard, Olivier J., and
Charles M. Kahn (1980): "The
Solution of Linear Difference Models under Rational Expectations,"
Econometrica
48: 1305-1311 (link: JSTOR).
Carlstrom, Charles T.,
and Timothy S. Fuerst (2000): "Forward-Looking
Versus Backward-Looking Taylor Rules," Federal Reserve Bank of Cleveland
WP 0009.
Carlstrom, Charles T., and
Timothy S. Fuerst (2001): "Timing
and Real Indeterminacy in Monetary Models," Journal of Monetary
Economics 47: 285-298 (link: Federal Reserve Bank of Cleveland WP version).
Dupor, William (1999): "Interest Rate Policy and
Global Indeterminacy," unpublished manuscript, University of Pennsylvania.
Dupor, William (2000): "August
14, 1990: Monetary Policy and Confidence," unpublished manuscript,
University of Pennsylvania.
Woodford,
Michael (1999): "Price-Level
Determination under Interest-Rate Rules," Chapter 2 in Interest
and Prices, unpublished manuscript, Princeton University.
Woodford, Michael (2000):
"A Neo-Wicksellian
Framework for the Analysis of Monetary Policy," Chapter 4 in Interest
and Prices, unpublished manuscript, Princeton University.
Woodford, Michael (2000): "Pitfalls
of Forward-Looking Monetary Policy," American Economic Review Papers
and Proceedings 90: 100-104.
Inflation, Welfare, and Optimal Monetary Policy/Interest Rate Rules
Ball, Laurence (1997): "Efficient
Monetary Policy Rules," NBER WP 5952.
Bassetto, Marco (2001): "Equilibrium
and Government Commitment," unpublished manuscript, University
of Minnesota.
Cecchetti, Stephen G., and Erica L. Groshen (2000):
"Understanding Inflation:
Implications for Monetary Policy," NBER WP 7482.
Clark, Peter, Charles Goodhart, and Haizhou Huang
(1999): "Optimal
Monetary Policy Rules in a Rational Expectations Model of the Phillips
Curve," FMG DP 0247, London School of Economics.
Dotsey, Michael, and Peter N. Ireland (1996): "The
Welfare Cost of Inflation in General Equilibrium," Journal of Monetary
Economics 37: 29-47.
Galí, Jordi, Mark
Gertler, and J. David López-Salido (2001): "Markups,
Gaps, and Economic Fluctuations," unpublished manuscript, Universitat
Pompeu Fabra, New York University, and Bank of Spain.
Giannoni, Marc P.
(2000): "Optimal
Interest-Rate Rules in a Forward-Looking Model, and Inflation Stabilization
versus Price-Level Stabilization," unpublished manuscript, Federal
Reserve Bank of New York.
Giannoni, Marc P., and Michael
Woodford (2001): "Optimal
Interest-Rate Rules," unpublished manuscript, Federal Reserve
Bank of New York and Princeton University.
Goodfriend, Marvin S., and
Robert G. King (2000): "The Case for Price Stability," unpublished
manuscript, Federal Reserve Bank of Richmond and Boston University.
Khan, Aubhik, Robert G. King,
and Alexander L. Wolman (2000): "Optimal
Monetary Policy," Federal Reserve Bank of Richmond WP 00-10.
King, Robert G., and Alexander L. Wolman (1999):
"What Should the Monetary Authority Do When Prices Are Sticky?" in TAYLOR99
(with Benjamin M. Friedman's comment).
McCallum, Bennett T. (1997): "Issues
in the Design of Monetary Policy Rules," in John B. Taylor and Michael
Woodford (eds.), Handbook of Macroeconomics, Amsterdam: Elsevier
Science (link: NBER WP version).
Rotemberg, Julio J., and Michael Woodford (1997):
"An Optimization-Based Framework
for the Evaluation of Monetary Policy," in Ben S. Bernanke and Julio
J. Rotemberg (eds.), NBER Macroeconomics Annual 1997, Cambridge:
MIT Press (link: NBER WP version).
Rotemberg, Julio J., and Michael
Woodford (1999): “Interest
Rate Rules in an Estimated Sticky Price Model,” in TAYLOR99 (with Martin
Feldstein's comment).
Svensson, Lars E. O. (1999): "How
Should Monetary Policy Be Conducted in an Era of Price Stability?"
in New Challenges for Monetary Policy, proceedings of a symposium
organized by the Federal Reserve Bank of Kansas City (with commentaries--Allan
Meltzer and Michael
Woodford--and general
discussion).
Steinsson, Jon (2000):
"Optimal Monetary
Policy in an Economy with Inflation Persistence," unpublished manuscript,
Princeton University.
Woodford, Michael (1999):
"Inflation Stabilization
and Welfare," Chapter 6 in Interest and Prices, unpublished
manuscript, Princeton University (NBER
WP 8071, 2001).
Price Stability in the Policy Debate
In 1996, the Federal Reserve Bank of Kansas City organized a symposium on "Achieving Price Stability." The proceedings were published in a volume with the same title. Here are some contributions (in the order in which they appear in the volume):
Greenspan, Alan (1996): "Opening
Remarks."
Fischer, Stanley (1996): "Why
Are Central Banks Pursuing Long-Run Price Stability?" (with Lawrence
Summers' commentary
and the general
discussion).
King, Mervyn (1996): "How
Should Central Banks Reduce Inflation? Conceptual Issues" (with commentaries--Rudiger
Dornbusch and Bennett
T. McCallum--and general
discussion).
Freedman, Charles (1996): "What
Operating Procedures Should Be Adopted to Maintain Price Stability?--Practical
Issues" (with commentaries--Otmar
Issing and Donald
L. Kohn--and general
discussion).
Taylor, John B. (1996): "How
Should Monetary Policy Respond to Shocks While Maintaining Long Run Price
Stability" (with commentaries--David
W. Mullins and Lars
E. O. Svensson--and general
discussion).
You can find the remaining contributions at http://www.kc.frb.org/PUBLICAT/SYMPOS/1996/Sym96prg.htm. FYI, the Federal Reserve Bank of Kansas City organizes a symposium on an important policy issue each year. The proceedings of recent symposia can be found at http://www.kc.frb.org/PUBLICAT/SYMPOS/SYMMAIN.HTM.
Batini, Nicoletta, and Andrew G. Haldane (1999):
"Forward-Looking
Rules for Monetary Policy," in TAYLOR99 (with Donald L. Khon's comment;
link: Bank of England WP version).
Batini, Nicoletta, and
Edward Nelson (2000): "Optimal
Horizons for Inflation Targeting," WP 119, Bank of England.
Bernanke, Ben S., and Frederic
S. Mishkin (1997): "Inflation
Targeting: A New Framework for Monetary Policy?" Journal of Economic
Perspectives 11: 97-116 (link: NBER WP version).
Bernanke, Ben S., and Michael
Woodford (1997): "Inflation
Forecasts and Monetary Policy," NBER WP 6157.
Carlstrom, Charles T., and Timothy S. Fuerst (1998):
"Real
Indeterminacy in Monetary Models with Nominal Interest rate Distortions:
The Problem with Inflation Targets," Federal Reserve Bank of Cleveland
WP 9818.
Carlstrom, Charles T., and Timothy S. Fuerst (1998):
"Price-Level
and Interest-Rate Targeting in a Model with Sticky Prices," Federal
Reserve Bank of Cleveland WP 9819.
Cecchetti, Stephen G. (1995): "Inflation
Indicators and Inflation Policy," in Ben S. Bernanke and Julio J. Rotemberg
(eds.), NBER Macroeconomics Annual 1995, Cambridge: MIT Press (link:
NBER WP version).
Cecchetti, Stephen G.,
and Michael Ehrmann (1999): "Does
Inflation Targeting Increase Output Volatility? An International Comparison
of Policymakers' Preferences and Outcomes," NBER WP 7426.
Cukierman, Alex (2000): "Establishing a Reputation
for Dependability by Means of Inflation Targets," Economics of Governance,
February.
Erceg, Christopher J., Dale W. Henderson, and Andrew
T. Levin (1999): "Tradeoffs Between Inflation and Output-Gap Variances
in an Optimizing Agent Model," unpublished manuscript, Board of
Governors of the Federal Reserve System.
European Central Bank (1999): "The
Monetary Policy Strategy and the Operational Framework of the Eurosystem,"
from the ECB's web site.
Galí, Jordi
(2001): "Targeting
Inflation in an Economy with Staggered Price Setting," unpublished
manuscript, Universitat Pompeu Fabra.
King, Mervyn (1997): "Changes in UK Monetary Policy:
Rules and Discretion in Practice," Journal of Monetary Economics
39: 81-97.
King, Robert G., and Alexander L. Wolman (1996):
"Inflation
Targeting in a St. Louis Model of the 21st Century," Federal Reserve
Bank of St. Louis Review 78: 83-107 (with commentaries: Edward
C. Prescott and Julio
J. Rotemberg).
Kuttner, Kenneth N., and Adam S. Posen (1999): "Does
Talk Matter After All? Inflation Targeting and Central Bank Behavior,"
Staff Report 88, Federal Reserve Bank of New York.
McDonough, William J, (1997): "A
Framework for the Pursuit of Price Stability," Economic Policy Review,
Federal Reserve Bank of New York, Vol. 3, No. 3.
Mishkin, Frederic S., and Klaus Schmidt-Hebbel (2001):
"One Decade of Inflation
Targeting in the World: What Do We Know and What Do We Need to Know?"
NBER WP 8397.
Mishkin, Frederic S., and Adam S. Posen (1997):
"Inflation
Targeting: Lessons from Four Countries," Economic Policy Review,
Federal Reserve Bank of New York, Vol. 3, No. 3.
Nessén, Marianne, and David Vestin (2000):
"Average Inflation
Targeting," unpublished manuscript, Sveriges Riksbank and Institute
for International Economic Studies, Stockholm University.
Rudebusch, Glenn D., and Lars
E. O. Svensson (1999): "Policy
Rules for Inflation Targeting," in TAYLOR99 (with Frederic S. Mishkin
and James H. Stock's comments).
Rudebusch, Glenn D., and Lars E. O. Svensson (1999):
"Eurosystem Monetary Targeting:
Lessons from U.S. Data," European Economic Review, forthcoming
(link: NBER WP version).
Smets, Frank
(2000): "What Horizon
for Price Stability?" ECB WP 24.
Svensson, Lars E. O.
(1997): "Inflation Forecast
Targeting: Implementing and Monitoring Inflation Targets," European
Economic Review 41: 1111-1146 (link: NBER WP version).
Svensson, Lars E. O.
(1999): "Inflation Targeting
as a Monetary Policy Rule," Journal of Monetary Economics 43:
607-654 (link: NBER WP version).
Svensson, Lars E. O. (1999): "Inflation
Targeting: Some Extensions," Scandinavian Journal of Economics
101: 337-361 (link: NBER WP version).
Svensson, Lars E. O. (1999): "Monetary
Policy Issues for the Eurosystem," Carnegie-Rochester Conference
Series on Public Policy 51: 79-136 (link: NBER WP version).
Svensson, Lars E. O. (1999): "Price
Stability as a Target for Monetary Policy: Defining and Maintaining Price
Stability," forthcoming in Deutsche Bundesbank, The Monetary Transmission
Process: Recent Developments and Lessons for Europe, London: MacMillan
(link: NBER WP version).
Svensson, Lars E. O. (2000): "The
First Year of the Eurosystem: Inflation Targeting or Not?" American
Economic Review Papers and Proceedings 90: 95-99 (link: NBER WP version).
Svensson, Lars E. O.
(2001): "What
Is Wrong with Taylor Rules? Using Judgment in Monetary Policy through Targeting
Rules," unpublished manuscript, Princeton University.
Svensson, Lars E. O., and
Michael Woodford (1999): "Implementing
Optimal Policy Through Inflation Forecast Targeting," unpublished
manuscript, IIES and Princeton University.
Végh, Carlos A. (1998):
"Monetary Policy,
Interest Rate Rules, and Inflation Targeting: Some Basic Equivalences,"
unpublished
manuscript, University of California, Los Angeles.
Note: BetAL99 is an excellent reading on this topic. On the U.S. experience reducing inflation, you may want to read Thomas J. Sargent's The Conquest of American Inflation, Princeton: Princeton University Press, 1999.
More on Optimal Monetary Policy, Comparison of Rules, and Rules vs. Discretion Revisited
Alvarez, Fernando, Robert E. Lucas, and Warren E.
Weber (2001): "Interest
Rates and Inflation," American Economic Review Papers and Proceedings,
forthcoming.
Canzoneri, Matthew B., Dale W. Henderson, and Kenneth
S. Rogoff (1983): "The
Information Content of the Interest Rate and Optimal Monetary Policy,"
Quarterly
Journal of Economics 98: 545-566 (link: K. S. Rogoff's web page).
Carlstrom, Charles T., and Timothy S. Fuerst (1995):
"Interest Rate Rules vs. Money Growth Rules: A Welfare Comparison in a
Cash-in-Advance Economy," Journal of Monetary Economics 36: 247-267.
Carlstrom, Charles T., and Timothy S. Fuerst (2000):
"Money
Growth Rules and Price Level Determinacy," Federal Reserve Bank of
Cleveland WP 0010.
Christiano, Lawrence J.,
and Christopher J. Gust (1999): "Taylor
Rules in a Limited Participation Model," NBER WP 7017.
Cooley, Thomas F., and
Vincenzo Quadrini (2000): "Optimal
Monetary Policy in a Phillips-Curve World," unpublished manuscript,
New York University.
Dupor, William (1999): "Optimal
Monetary Policy with Nominal Rigidities," unpublished manuscript,
University of Pennsylvania.
Erceg, Christopher J., Dale W. Henderson, and Andrew
T. Levin (2000): "Optimal Monetary Policy with Staggered Wage and Price
Contracts," Journal of Monetary Economics 46: 281-313.
Feldstein, Martin, and James H. Stock (1994): "The
Use of a Monetary Aggregate to Target Nominal GDP," in MANKIW94 (with
John B. Taylor and Bennett T. McCallum comments; link: NBER WP version).
Galí, Jordi
(2000): "New
Perspectives on Monetary Policy, Inflation, and the Business Cycle,"
unpublished
manuscript, Universitat Pompeu Fabra.
Gerlach, Stefan, and Lars E. O. Svensson (2000):
"Money and Inflation in the
Euro Area: A Case for Monetary Indicators?" NBER WP 8025.
Hall, Robert E., and N. Gregory Mankiw (1994): "Nominal
Income Targeting," in MANKIW94 (with Kenneth D. West's comment; link:
NBER WP version).
Henderson, Dale W., and
Jinill Kim (1999): "Exact
Utilities under alternative Monetary Rules in a Simple Macro Model with
Optimizing Agents," International Finance Discussion Paper 635, Board
of Governors of the Federal Reserve System.
Henderson, Dale W., and
Jinill Kim (2000): "Exactly
How Suboptimal Are Inflation Targeting and Nominal Income Growth Targeting?"
unpublished
manuscript, Board of Governors of the Federal Reserve System and University
of Virginia.
Jensen, Henrik (1999):
"Targeting
Nominal Income Growth or Inflation?" American Economic Review,
forthcoming (link: H. Jensen's web page).
Khan, Aubhik, Robert G.
King, and Alexander L. Wolman (2001): "The
Pitfalls of Monetary Discretion," WP 01-8, Federal Reserve Bank of
Richmond.
Lengwiler, Yvan, and Athanasios Orphanides (1999):
"Optimal
Discretion," Finance and Economics Discussion Series, Staff WP 1999-42,
Board of Governors of the Federal Reserve System.
McCallum, Bennett T.
(1997): "The
Alleged Instability of Nominal Income Targeting," NBER WP 6291.
McCallum, Bennett T. (1999): "Recent
Developments in Monetary Policy Analysis: The Roles of Theory and Evidence,"
unpublished
manuscript, Carnegie Mellon University.
McCallum, Bennett T.
(2001): "Should
Monetary Policy Respond Strongly to Output Gaps?" unpublished manuscript,
Carnegie Mellon University.
McCallum, Bennett T., and
Edward Nelson (1999): "Performance
of Operational Policy Rules in an Estimated Semiclassical Structural Model,"
in TAYLOR99 (with Mark Gertler's comment; link: NBER WP version).
McCallum, Bennett T., and
Edward Nelson (2000): "Timeless
Perspective vs. Discretionary Monetary Policy in Forward-Looking Models,"
NBER WP 7915.
Mishkin, Frederic S. (1999): "International
Experiences with Different Monetary Policy Regimes," NBER WP 7044.
Neiss, Katharine S., and Edward Nelson (2000): "The
Real Interest rate Gap as an Inflation Indicator," unpublished manuscript,
Bank of England.
Sack, Brian, and Volker Wieland (1999): "Interest-rate
Smoothing and Optimal Monetary Policy: A Review of Recent Empirical Evidence,"
Finance and Economics Discussion Series, Staff WP 1999-39, Board of Governors
of the Federal Reserve System.
Svensson, Lars E. O. (2000): "Does
the P* Model Provide Any Rationale for Monetary Targeting?" NBER WP
7178.
Svensson, Lars E. O.
(2001): "Requiem
for Forecast-Based Instrument Rules," unpublished manuscript,
Princeton University.
Walsh, Carl E. (2001): "The Output Gap and Optimal
Monetary Policy," unpublished manuscript, University of California,
Santa Cruz.
Williams, John C. (1999): "Simple
Rules for Monetary Policy, " Finance and Economics Discussion Series,
Staff WP 1999-12, Board of Governors of the Federal Reserve System.
Woodford, Michael (1994): "Nonstandard Indicators
for Monetary Policy: Can Their Usefulness Be Judged from Forecasting Regressions?"
in MANKIW94.
Woodford, Michael (1999):
“Optimal Monetary
Policy Inertia,” The Manchester School 67 (Supplement): 1-35
(link: NBER WP version).
Monetary Policy and Asset Bubbles
Bernanke, Ben S., and Mark
Gertler (1999): "Monetary
Policy and Asset Price Volatility," in New Challenges for Monetary
Policy, proceedings of a symposium organized by the Federal Reserve
Bank of Kansas City (with Rudiger Dornbusch's commentary
and the general
discussion).
Bernanke, Ben S., and Mark
Gertler (2001): "Should
Central Bankers Respond to Asset Prices?" American Economic Review
Papers and Proceedings.
Bryan, Michael F., Stephen
G. Cecchetti, and Roisin O'Sullivan (2001): "Asset
Prices in the Measurement of Inflation," unpublished manuscript,
Ohio State University.
Cecchetti, Stephen G., Hans Genberg, John Lipsky,
and Sushil Wadhwani (2000): "Asset
Prices and Central Bank Policy," Geneva Report on the World Economy
No. 2.
Rigobon, Roberto, and Brian
Sack (2001): "Measuring
the Reaction of Monetary Policy to the Stock Market," NBER WP 8350.
Evidence on Interest Rate Rules
Christiano, Lawrence J., and Christopher Gust (1999):
"The
Great Inflation of the 1970s," unpublished manuscript, Northwestern
University and Board of Governors of the Federal Reserve System.
Clarida, Richard, Jordi Galí,
and Mark Gertler (1998): "Monetary
Policy Rules in Practice: Some International Evidence," European
Economic Review 42: 1033-1067 (link: M. Gertler's web page).
Clarida, Richard, Jordi Galí,
and Mark Gertler (2000): "Monetary
Policy Rules and Macroeconomic Stability: Evidence and Some Theory,"
Quarterly
Journal of Economics 115: 147-180 (link: M. Gertler's web page).
Galí, Jordi, J. David López-Salido,
and Javier Vallés (2000): "Technology
Shocks and Monetary Policy: Assessing the Fed's Performance," unpublished
manuscript, Universitat Pompeu Fabra and Bank of Spain.
Ireland, Peter N.
(1999): "Interest Rates, Inflation,
and Federal Reserve Policy Since 1980," Boston College Economics Department
WP 419.
Leeper, Eric M., and Tao Zha (2000): "Assessing
Simple Policy Rules: A View from a Complete Macro Model," Federal Reserve
Bank of Atlanta Working Paper 2000-19.
McCallum, Bennett T.
(2000): "Alternative
Monetary Policy Rules: A Comparison with Historical Settings for the United
States, the United Kingdom, and Japan," Economic Quarterly,
Federal Reserve Bank of Richmond.
McGrattan, Ellen R.
(1999): "Predicting
the Effects of Federal Reserve Policy in a Sticky-Price Model: An Analytical
Approach," Federal Reserve Bank of Minneapolis Working Paper 598.
Nelson, Edward (2000): "UK
Monetary Policy 1972-97: A Guide Using Taylor Rules," Bank of England
WP 120.
Orphanides, Athanasios (2000): "Activist
Stabilization Policy and Inflation: The Taylor Rule in the 1970s,"
Finance and Economics Discussion Series, Staff WP 2000-13, Board of Governors
of the Federal Reserve System.
Sims, Christopher (1998): "The
Role of Interest Rate Policy in the Generation and Propagation of Business
Cycles: What Has Changed Since the '30s?" unpublished manuscript,
Princeton University (with Lawrence J. Christiano's discussion).
Liquidity Traps, the Zero Bound: Drawbacks of Interest Rate Rules?
Benhabib, Jess, Stephanie Schmitt-Grohé, and
Martín Uribe (1999): "The
Perils of Taylor Rules," Journal of Economic Theory 96: 40-69
(link: M. Uribe's web page).
Benhabib, Jess, Stephanie
Schmitt-Grohé, and Martín Uribe (2000): "Avoiding
Liquidity Traps," unpublished manuscript, New York University,
Rutgers University, and University of Pennsylvania.
Benhabib, Jess, Stephanie
Schmitt-Grohé, and Martín Uribe (2000): "Chaotic
Interest Rate Rules," unpublished manuscript, New York University,
Rutgers University, and University of Pennsylvania.
Bernanke, Ben S. (2000): "Japanese Monetary Policy:
A Case of Self Induced Paralysis?" Institute for International Economics.
Blanchard, Olivier (2000): "Bubbles, Liquidity Traps,
and Monetary Policy: Comments on Jinushi et al. and on Bernanke," unpublished
manuscript, MIT.
Buiter, Willem H., and Nikolaos Panigirtzoglou (1999):
"Liquidity Traps: How to
Avoid Them and How to Escape Them," NBER WP 7245.
Clouse, James, Dale Henderson, Athanasios Orphanides,
David Small, and Peter Tinsley (2000): "Monetary
Policy When the Nominal Short-Term Interest Rate Is Zero," Finance
and Economics Discussion Series, Staff WP 2000-51, Board of Governors of
the Federal Reserve System.
Goodfriend, Marvin S.
(2000): "Overcoming
the Zero Bound on Interest Rate Policy," Federal Reserve Bank of Richmond
WP 00-3.
Ireland, Peter N.
(2001): "The Real Balance
Effect," Boston College Economics Department WP 491.
Jinushi, T., Y. Kuroki, and R. Miyao (2000): "Monetary
Policy in Japan Since the Late 1980s: Delayed Policy Actions and Some Explanations,"
Institute
for International Economics, forthcoming.
McCallum, Bennett T. (1999): "Theoretical
Analysis Regarding a Zero Lower Bound on Nominal Interest Rates," unpublished
manuscript, Carnegie Mellon University (with Lawrence J. Christiano's
comment).
Orphanides, Athanasios (1999): "The
Quest for Prosperity Without Inflation," Board of Governors of the
Federal Reserve System.
Orphanides, Athanasios, and Volker Wieland (1998):
"Price
Stability and Monetary Policy Effectiveness when Interest Rates Are Bounded
at Zero," Finance and Economics Discussion Series, Staff WP 1998-35,
Board of Governors of the Federal Reserve System.
Orphanides, Athanasios,
and Volker Wieland (1999): "Efficient
Monetary Policy Design Near Price Stability," Finance and Economics
Discussion Series, Staff WP 1999-67, Board of Governors of the Federal
Reserve System.
Reifschneider, David, and John C. Williams: "Three
Lessons for Monetary Policy in a Low Inflation Era," Finance and Economics
Discussion Series, Staff WP 1999-44, Board of Governors of the Federal
Reserve System.
Schmitt-Grohé, Stephanie, and Martín
Uribe (2000): "Liquidity
Traps with Global Taylor Rules," unpublished manuscript, Rutgers
University and University of Pennsylvania.
McCallum, Bennett T. (1999): "Role
of the Minimal State Variable Criterion in Rational Expectation Models,"
International
Tax and Public Finance 6: 621-639.
McCallum, Bennett T.
(2000): "Monetary
Policy Analysis in Models Without Money," unpublished manuscript,
Carnegie Mellon University.
Woodford, Michael (1998): "Doing Without Money:
Controlling Inflation in a Post-Monetary World," Review of Economic
Dynamics 1: 173-219.
Woodford, Michael (2000): "Monetary
Policy in a World Without Money," NBER WP 7853.
Parameter Uncertainty, Model Uncertainty, Measurement Errors
Estrella, Arturo, and Frederic S. Mishkin (1999):
"Rethinking the Role of NAIRU
in Monetary Policy: Implications of Model Formulation and Uncertainty,"
in TAYLOR99 (link: NBER WP version).
Galí, Jordi (2000): "The
Conduct of Monetary Policy in the Face of Technological Change: Theory
and Postwar U.S. Evidence," unpublished manuscript, Universitat
Pompeu Fabra.
Giannoni, Marc P. (2000):
"Does
Model Uncertainty Justify Caution? Robust Optimal Monetary Policy in a
Forward-Looking Model," Macroeconomic Dynamics, forthcoming.
Giannoni, Marc P.
(2000): "Robust
Optimal Monetary Policy in a Forward-Looking Model with Parameter and Shock
Uncertainty," unpublished manuscript, Federal Reserve Bank of
New York.
Levin, Andrew, Volker Wieland,
and John C. Williams (1998): "Robustness
of Simple Monetary Policy Rules under Model Uncertainty," in TAYLOR99
(with Lawrence J. Christiano and Christopher J. Gust's comment).
Levin, Andrew, Volker Wieland,
and John C. Williams (1999): "The Performance of Forecast-Based
Monetary Policy Rules under Model Uncertainty," unpublished manuscript,
Board of Governors of the Federal Reserve System (authors 1 and 3) and
Goethe University Frankfurt.
Meyer, Laurence H., Eric T. Swanson, and Volker
W. Wieland (2001): "NAIRU
Uncertainty and Nonlinear Policy Rules," Finance and Economics Discussion
Series, Staff WP 2001-1, Board of Governors of the Federal Reserve System.
Orphanides, Athanasios (1997): "Monetary
Policy Rules Based on Real Time Data," Finance and Economics Discussion
Series, Staff WP 1998-03, Board of Governors of the Federal Reserve System.
Orphanides, Athanasios (1998): "Monetary
Policy with Noisy Information," Finance and Economics Discussion Series,
Staff WP 1998-50, Board of Governors of the Federal Reserve System.
Orphanides, Athanasios, Richard D. Porter, David
Reifschneider, Robert Tetlow, and Frederico Finan (1999): "Errors
in the Measurement of the Output Gap and the Design of Monetary Policy,"
Finance and Economics Discussion Series, Staff WP 1999-45, Board of Governors
of the Federal Reserve System.
Smets, Frank (1998): "Output
Gap Uncertainty: Does It Matter for the Taylor Rule?" BIS WP 60.
Svensson, Lars E. O., and
Michael Woodford (2000): "Indicator
Variables for Optimal Policy," unpublished manuscript, IIES
and Princeton University.
Tetlow, Robert J. (2000): "Inflation
Targeting and Target Instability," Finance and Economics Discussion
Series, Staff WP 2000-1, Board of Governors of the Federal Reserve System.
Tetlow, Robert J., and Peter von zur Muehlen (2000):
"Robust
Monetary Policy with Misspecified Models: Does Model Uncertainty Always
Call for Attenuated Policy?" Finance and Economics Discussion Series,
Staff WP 2000-28, Board of Governors of the Federal Reserve System.
von zur Muehlen, Peter (2001): "Activist
vs. Non-Activist Monetary Policy: Optimal Rules Under Extreme Uncertainty
(A Primer on Robust Control)," Finance and Economics Discussion Series,
Staff WP 2001-2, Board of Governors of the Federal Reserve System.
Bullard, James, and Kaushik
Mitra (1999): "Learning
About Monetary Policy Rules," Federal Reserve Bank of St. Louis WP
2000-001.
Carlstrom, Charles T.,
and Timothy S. Fuerst (2001): "Learning and the Central Bank,"
unpublished
manuscript, Federal Reserve Bank of Cleveland and Bowling Green State
University.
Evans, George W., and Seppo Honkapohja (2001): "Expectations
and the Stability Problem for Optimal Monetary Policy," unpublished
manuscript, University of Oregon and University of Helsinki.
Honkapohja, Seppo, and Kaushik
Mitra (2001): "Are
Non-Fundamental Equilibria Learnable in Models of Monetary Policy?"
unpublished
manuscript, University of Helsinki and University of York.
Tetlow, Robert J., Peter von zur Muehlen, and Frederico
S. Finan (1998): "Learning
and the Complexity of Monetary Policy Rules," Reserve Bank of New Zealand.
Tetlow, Robert J., and
Peter von zur Muehlen (1999): "Simplicity
Versus Optimality: The Choice of Monetary Policy Rules When Agents Must
Learn," Finance and Economics Discussion Series, Staff WP 1999-10,
Board of Governors of the Federal Reserve System.
Wieland, Volker (1999): "Monetary
Policy, Parameter Uncertainty, and Optimal Learning," Finance and Economics
Discussion Series, Staff WP 1999-48, Board of Governors of the Federal
Reserve System.
George W. Evans and Seppo Honkapohja's Learning and Expectations in Macroeconomics, Princeton University Press, 2001 is an excellent reference on this topic.
Cavallo, Michele, and Fabio
Ghironi (2001): "Net
Foreign Assets and the Exchange Rate: Redux Revived," Boston College
Economics Department WP 505 (prepared for the November 2001 Carnegie-Rochester
Conference on Public Policy).
Corsetti, Giancarlo, and Paolo Pesenti (2001): "Welfare
and Macroeconomic Interdependence," Quarterly Journal of Economics
116: 421-446 (link: NBER WP version).
Ghironi, Fabio
(2000), "Understanding Macroeconomic
Interdependence: Do We Really Need to Shut Off the Current Account?,"
Boston College Economics Department WP 465.
Ghironi, Fabio
(2000): "Macroeconomic Interdependence
under Incomplete Markets," Boston College Economics Department WP 471.
Lane, Philip (2000): "The
New Open Economy Macroeconomics: A Survey," Journal of International
Economics 54: 235-266 (link: P. Lane's web page).
Obstfeld, Maurice, and Kenneth Rogoff (1995): "Exchange
Rate Dynamics Redux," Journal of Political Economy 103: 624-660
(link: JSTOR).
Obstfeld, Maurice, and Kenneth Rogoff (1998): "Risk
and Exchange Rates," NBER WP 6694.
Obstfeld, Maurice, and Kenneth Rogoff (2000): "New
Directions for Stochastic Open Economy Models," Journal of International
Economics 50: 117-154 (link: K. Rogoff's web page).
Sarno, Lucio (2000), "Towards
a New Paradigm in Open Economy Modeling: Where Do We Stand?" Review,
Federal Reserve Bank of St. Louis.
Tille, Cédric (2000): "The
Role of Consumption Substitutability in the International Transmission
of Shocks," Journal of International Economics (link: New York
Fed Staff Report version).
Walsh, Carl E. (1998):
"Money and the Open Economy," Chapter 6 in WALSH98.
Visit Brian M. Doyle's "New Open Economy Macroeconomics" home page for an excellent coverage of the recent open economy literature.
Monetary Policy Rules in Open Economies
Ball, Laurence (1998): "Policy
Rules for Open Economies," in TAYLOR99 (with Thomas Sargent's comment;
link: NBER WP version).
Ball, Laurence (2000): "Policy
Rules and External Shocks," NBER working paper #7910;
Batini, Nicoletta, and Andrew Haldane (1999), "Forward
Looking Rules for Monetary Policy," Bank of England WP 91.
Benigno, Gianluca
(1999): "Real
Exchange Rate Persistence and Monetary Policy Rules," unpublished
manuscript, Bank of England.
Benigno, Gianluca, and
Pierpaolo Benigno (2000): "Price
Stability as a Nash Equilibrium in Monetary Open-Economy Models," unpublished
manuscript, Bank of England and New York University.
Benigno, Gianluca, and Pierpaolo Benigno (2000):
"Monetary
Policy Rules and the Exchange Rate," unpublished manuscript,
Bank of England and New York University.
Benigno, Gianluca, Pierpaolo
Benigno, and Fabio Ghironi (2000): "Interest
Rates Rules for Fixed Exchange Rate Regimes," Boston College
Economics Department WP 468.
Benigno, Pierpaolo
(1999): "Optimal Monetary
Policy in a Currency Area," unpublished manuscript, New York
University.
Benigno, Pierpaolo
(2001): "Price
Stability with Imperfect Financial Integration," unpublished manuscript,
New York University.
Borondo, Carlos (2000): "International
Transmission of Monetary Shocks with Interest Rate Rules," unpublished
manuscript, Universidad de Valladolid.
Canzoneri, Matthew B., and Dale W. Henderson (1991):
Monetary
Policy in Interdependent Economies: A Game-Theoretic Approach, Cambridge:
MIT Press.
Carlstrom, Charles T., and Timothy S. Fuerst (1999):
"Optimal
Monetary Policy in a Small, Open Economy: A General-Equilibrium Analysis,"
Federal Reserve Bank of Cleveland, WP 9911;
Clarida, Richard, Jordi Galí, and Mark Gertler
(2001a): "Optimal
Monetary Policy in Open vs. Closed Economies: An Integrated Approach,"
American
Economic Review Papers and Proceedings.
Clarida, Richard, Jordi
Galí, and Mark Gertler (2001b): "A
Simple Framework for International Monetary Policy Analysis," prepared
for the November 2001 Carnegie-Rochester Conference on Public Policy.
Cooley, Thomas F., and Vincenzo Quadrini (2001):
"Common Currencies
vs. Monetary Independence," unpublished manuscript, New York
University.
Corsetti, Giancarlo, and
Paolo Pesenti (2001): "International
Dimension of Optimal Monetary Policy," unpublished manuscript,
University of Rome III and Federal Reserve Bank of New York.
Devereux, Michael, and Charles Engel (1998), "Fixed
vs. Floating Exchange Rates: How Price Setting Affects the Optimal Choice
of Exchange-Rate Regime," NBER WP 6867.
Devereux, Michael, and
Charles Engel (2000): "Monetary
Policy in the Open Economy Revised: Price Setting and Exchange Rate Flexibility,"
NBER WP 7665.
Galí, Jordi, and
Tommaso Monacelli (1999): "Optimal
Monetary Policy and Exchange Rate Variability in a Small Open Economy,"
unpublished
manuscript, Universitat Pompeu Fabra and Boston College.
Gertler, Mark, Simon Gilchrist and Fabio Massimo
Natalucci (2000): "External
Constraints on Monetary Policy and the Financial Accelerator," unpublished
manuscript, New York University, Boston University, and Board of Governors
of the Federal Reserve System.
Ghironi, Fabio
(2000), "Alternative Monetary
Rules for a Small Open Economy: The Case of Canada," Boston College
Economics Department WP 466.
Giavazzi, Francesco, and Marco Pagano (1988): "The
Advantage of Tying One's Hands: EMS Discipline and Central Bank Credibility,"
European
Economic Review 32: 1050-1082.
Kollmann, Robert
(2001): "Monetary
Policy Rules in the Open Economy: Effects on Welfare and Business Cycles,"
prepared for the November 2001 Carnegie-Rochester Conference on Public
Policy.
Leitemo, Kai (1999): "Inflation
Targeting Strategies in Small Open Economies," University of Oslo Economics
Department WP 21/99.
Leitemo, Kai (2000): "The
Performance of Inflation Forecast Feedback Rules in Small Open Economies,"
Norges Bank WP.
Leitemo, Kai, and Roisland Oistein (1999): "Choosing
a Monetary Policy Regime: Effects on the Traded and Non-Traded Sectors,"
University of Oslo Economics Department WP 04/99.
Leitemo, Kai, and Ulf Söderström
(2000): "Simple
Monetary Policy Rules and Exchange Rate Uncertainty," unpublished
manuscript, Norges Bank and Sveriges Riksbank;
McCallum, Bennett T. (2000): "Inflation
Targeting and the Liquidity Trap," unpublished manuscript, Carnegie-Mellon
University.
McCallum, Bennett T., and Edward Nelson (1999):
"Nominal Income Targeting
in an Open Economy Optimizing Model," Journal of Monetary Economics
43: 553-578 (link: NBER WP version).
McCallum, Bennett T., and Edward Nelson (2001):
"Monetary Policy for an Open
Economy: An Alternative Framework with Optimizing Agents and Sticky Prices,"
NBER WP 8175.
Monacelli, Tommaso
(1998): "Into the Mussa
Puzzle: Monetary Regimes and the Real Exchange Rate in a Small Open Economy,"
unpublished
manuscript, Boston College.
Monacelli, Tommaso
(1999): "Open Economy
Policy Rules under Imperfect Pass-Through," unpublished manuscript,
Boston College.
Monacelli, Tommaso
(2000): "Relinquishing Monetary
Policy Independence," Boston College Economics Department WP 483.
Obstfeld, Maurice, and Kenneth Rogoff (2001): "Global
Implications of Self-Oriented National Monetary Rules," Quarterly
Journal of Economics, forthcoming.
Parrado, Eric, and Andrés
Velasco (2001): "Optimal
interest Rate Policy in a Small Open Economy: The Case for a Clean Float,"
unpublished
manuscript, New York University and Harvard University.
Smets, Frank, and Raf Wouters
(2001):
"Openness,
Imperfect Exchange Rate Pass-Through and Monetary Policy," prepared
for the November 2001 Carnegie-Rochester Conference on Public Policy.
Svensson, Lars E. O. (2000): "Open-Economy
Inflation Targeting," Journal of International Economics
50: 155-183.
Taylor, John B. (2000): "The
Role of the Exchange Rate in Monetary Policy Rules," unpublished
manuscript, Stanford University;
Uribe, Martín (2000): "Real
Exchange Rate Targeting and Macroeconomic Instability," unpublished
manuscript, University of Pennsylvania.
Walsh, Carl E. (1999): "Monetary
Policy Trade-Offs in the Open Economy," unpublished manuscript,
University of California, Santa Cruz;
Weerapana, Akila
(1998), "The
Performance of Simple Monetary Policy Rules in a Large Open Economy,"
Wellesley College Economics Department WP 2000-05.
Weerapana, Akila (1998), "Monetary
Policy Interactions Between the U.S. and the EMU," unpublished manuscript,
Wellesley College.
Monetary Rules for Emerging Market Economies
Calvo, Guillermo A. (2000): "Notes
on Price Stickiness: With Special Reference to Liability Dollarization
and Credibility," unpublished manuscript, University of Maryland.
Calvo, Guillermo A. (2001): "Capital
Markets and the Exchange Rate, with Special Reference to the Dollarization
Debate in Latin America," Journal of Money, Credit and Banking
33: 312-334 (link: G. A. Calvo's web page).
Calvo, Guillermo A., and Carlos A. Végh
(1999): "Inflation Stabilization
and BOP Crises in Developing Countries," in J. B. Taylor and M. Woodford
(eds.), Handbook of Macroeconomics, Amsterdam: North-Holland (link:
G. A. Calvo's web page).
Céspedes, Luis F.,
Roberto Chang, and Andrés Velasco (2001): "Balance
Sheets and Exchange Rate Policy," unpublished manuscript, International
Monetary Fund, Rutgers University, and Harvard University.
Céspedes,
Luis F., Roberto Chang, and Andrés Velasco
(2001): "Dollarization
of Liabilities, Net Worth Effects and Optimal Monetary Policy," unpublished
manuscript, International Monetary Fund, Rutgers University, and Harvard
University.
Cooley, Thomas F., and Vincenzo
Quadrini (2001): "The
Costs of Losing Monetary Independence: The Case of Mexico," Journal
of Money, Credit and Banking 33: 370-397 (link: V. Quadrini's web page).
Devereux, Michael, and
Philip Lane (2001): "Exchange
Rates and Monetary Policy in Emerging Market Economies," unpublished
manuscript, University of British Columbia and Trinity College.
Ghironi, Fabio, and Alessandro
Rebucci (2000): "Monetary
Rules for Emerging Market Economies," Boston College Economics Department
WP 476.
Larraín B., Felipe,
and Andrés Velasco (2001): "Exchange
Rate Policy in Emerging Markets: The Case for Floating," unpublished
manuscript, Harvard University.
Mendoza, Enrique G. (2001): "The
Benefits of Dollarization when Stabilization Policy Lacks Credibility and
Financial Markets Are Imperfect," Journal of Money, Credit and Banking
33: 440-474 (link: E. G. Mendoza's web page).
Mishkin, Frederic S. (2000): "Inflation
Targeting in Emerging Market Countries," NBER WP 7618.
Morón, Eduardo,
and Diego Winkelried (2001): "Monetary
Policy Rules for Financially Vulnerable Economies," unpublished
manuscript, Universidad del Pacifico and Banco Central de Reserva del
Perú.
Schmitt-Grohé, Stephanie, and Martín
Uribe (2001): "Stabilization
Policy and the Costs of Dollarization," Journal of Money, Credit
and Banking 33: 482-509 (link: M. Uribe's web page).
Taylor, John B. (2000): "Using
Monetary Policy Rules in Emerging Market Economies," unpublished
manuscript, Stanford University.
Velasco, Andrés
(2001): "The
Impossible Duo: Globalization and Monetary Independence in Emerging Markets,"
unpublished
manuscript, Harvard University.
Note: For additional references on monetary rules in open economies (and a number of empirical papers), visit the web page on Monetary Policy Rules in Open Economies created and maintained by Gianluca Benigno (Bank of England), Pierpaolo Benigno (New York University), and myself.
Browse the Journal of International Economics for interesting published papers on monetary policy in open economies.
Bassetto, Marco (2001):
"A Game-Theoretic
View of the Fiscal Theory of the Price Level," Federal Reserve Bank
of Minneapolis WP 612.
Benhabib, Jess, Stephanie Schmitt-Grohé,
and Martín Uribe (1999): "Monetary
Policy and Multiple Equilibria," American Economic Review ??:
167-186.
Buiter, Willem H. (1998): "The
Young Person's Guide to Neutrality, Price Level Indeterminacy, Interest
Rate Pegs, and Fiscal Theories of the Price Level," NBER WP 6396.
Buiter, Willem H. (1999): "The
Fallacy of the Fiscal Theory of the Price Level," NBER WP 7302.
Canzoneri, Matthew B., Robert E. Cumby, and Behzad
T. Diba (2000): "Is
the Price Level Determined by the Need for Fiscal Solvency?" American
Economic Review, forthcoming.
Christiano, Lawrence J.,
and Terry J. Fitzgerald (2000): "Understanding
the Fiscal Theory of the Price Level," unpublished manuscript,
Northwestern University.
Cochrane, John H. (1999): "A
Frictionless View of U.S. Inflation," unpublished manuscript,
University of Chicago.
Cochrane, John H.
(1999): "Money
as Stock: Price Level Determination with No Money Demand," unpublished
manuscript, University of Chicago.
Cochrane, John H. (2001): "Long-Term
Debt and Optimal Fiscal Policy in the Fiscal Theory of the Price Level,"
Econometrica
69: 69-116 (link: J. H. Cochrane's web page).
Drazen, Allan, and Elhanan Helpman (1990): "Inflationary
Consequences of Anticipated Macroeconomic Policies," Review of Economic
Studies 57: 147-166.
Kocherlakota, Narayana, and Christopher Phelan (1999):
"Explaining
the Fiscal Theory of the Price Level," Federal Reserve bank of Minneapolis
Quarterly Review 23: 14-23.
Sargent, Thomas J., and Neil
Wallace (1981): "Some
Unpleasant Monetarist Arithmetic," Federal Reserve Bank of Minneapolis
Quarterly
Review 5: 1-17.
Sims, Christopher A. (1993): "A
Simple Model for the Study of the Determination of the Price Level and
the Interaction of Monetary and Fiscal Policy," unpublished manuscript,
Princeton University.
Sims, Christopher A. (2000): "Whither
ISLM," unpublished manuscript, Princeton University.
Taylor, John B. (1995): "Monetary
Policy Implications of Greater Fiscal Discipline," in Budget Deficits
and Debt: Issues and Options, proceedings of a symposium organized
by the Federal Reserve Bank of Kansas City (with commentaries--Mervyn
King and Helmut
Schieber--and general
discussion).
Walsh, Carl E. (1998):
"Money and Public Finance," Chapter 4 in WALSH98.
Woodford, Michael (1997): "Control
of the Public Debt: A Requirement for Price Stability," in Calvo, G.,
and M. King, The Debt Burden and Monetary Policy, London: Macmillan
(link: NBER WP version).
Woodford, Michael
(1998): "Public Debt
and the Price Level," unpublished manuscript, Princeton University.
Woodford, Michael (2000):
"Fiscal Requirements
for Price Stability," Journal of Money, Credit, and Banking,
forthcoming.
Optimal Monetary and Fiscal Policy
Chari, V. V., Lawrence J. Christiano,
and Patrick J. Kehoe (1996): "Optimality of the Friedman Rule in Economies
with Distorting Taxes," Journal of Monetary Economics 37: 203-223.
Chari, V.V., and Patrick J. Kehoe (1999): “Optimal
Fiscal and Monetary Policy,” in John B. Taylor and Michael Woodford (eds.),
Handbook
of Macroeconomics, Amsterdam: Elsevier Science.
Correia, Isabel, and Pedro Teles (1997): "The
Optimal Inflation Tax," Federal Reserve Bank of Minneapolis Discussion
Paper 123.
Dixit, Avinash, and Luisa
Lambertini (2001): "Fiscal
Discretion Destroys Monetary Commitment," unpublished manuscript,
Princeton University and UCLA.
Lucas, Robert E., and Nancy L. Stokey (1983): "Optimal
Fiscal and Monetary Policy in an Economy Without Capital," Journal of
Monetary Economics 12: 55-93.
Schmitt-Grohé, Stephanie,
and Martín Uribe (2001a): “Optimal
Fiscal and Monetary Policy under Imperfect Competition,” unpublished
manuscript, Rutgers University and University of Pennsylvania.
Schmitt-Grohé, Stephanie,
and Martín Uribe (2001b): “Optimal
Fiscal and Monetary Policy under Sticky Prices,” unpublished manuscript,
Rutgers University and University of Pennsylvania.
Political Economy of Inflation
Torsten Persson and Guido Tabellini's Political Economics (Cambridge: MIT Press, 2000) is an excellent survey of the literature on political economy. So is Allan Drazen's Political Economy in Macroeconomics (Princeton: Princeton University Press, 2000).
Albanesi, Stefania (2000): "Inflation
and Inequality," IGIER WP 199, Bocconi University.
Persson, Torsten, and Guido Tabellini (1999): "Political
Economics and Macroeconomic Policy," in John B. Taylor and Michael
Woodford (eds.), Handbook of Macroeconomics, Amsterdam: North-Holland
(link: NBER WP version).
TO BE COMPLETED
A number of researchers at various central banks' research departments work on issues that are directly relevant to the topics in this web page. Several of their papers were included in the list. I encourage you to explore the working paper series I list below to find additional interesting readings for your research:
Finance and Economics
Discussion Series, Board of Governors of the Federal Reserve System.
Staff Reports,
Federal Reserve Bank of New York.
Staff
Reports and Working Papers, Federal Reserve Bank of Minneapolis.
Working Paper
Series, Bank of England.
Working Paper Series,
European Central Bank.
Working Paper Series,
Federal Reserve Bank of Richmond.
JSTOR
ECONbase:
Elsevier Journals
Carnegie-Rochester
Conference Series on Public Policy
Journal
of Monetary Economics
Journal
of International Economics
NBER and CEPR publish working paper series and organize high quality conferences. Keeping up to date with the papers and looking at the conference programs is a good way to gauge trends in research. (Links to conferences on monetary policy are also in the web page on "Monetary Policy Rules in Open Economies" mentioned above.)
Here are links to the Federal Reserve's research departments:
Federal Reserve Board
Federal Reserve Bank
of Atlanta
Federal Reserve
Bank of Boston
Federal
Reserve Bank of Chicago
Federal Reserve
Bank of Cleveland
Federal
Reserve Bank of Dallas
Federal Reserve
Bank of Kansas City
Federal Reserve
Bank of Minneapolis
Federal Reserve
Bank of New York
Federal Reserve Bank
of Philadelphia
Federal Reserve Bank of
Richmond
Federal Reserve
Bank of San Francisco
Federal Reserve
Bank of St. Louis
The map of the Federal Reserve (with links)
Links to an arbitrary list of other central banks:
Banco Central
de la República Argentina
Banco
Central de Chile
Banco Central do Brasil
Banco
de México
Bank of Canada
Bank of England
Bank of Israel
Bank of Japan
Banka Slovenije
(Slovenia)
Central Bank of Egypt
Central bank of the Republic of Turkey
Central Bank of Swaziland
Eesti Pank (Estonia)
European Central Bank (with links
to European Union central banks)
Narodowy Bank Polski (Poland)
Reserve Bank of Australia
Reserve Bank of India
Reserve Bank of New Zealand
South African Reserve Bank
Sveriges Riksbank (Sweden)
The Central Bank of the Russian Federation
More: http://directory.google.com/Top/Science/Social_Sciences/Economics/Central_Banks/
Reading central bank press releases and the speeches of senior officials is a good way to keep up to date with policy issues and how central banks communicate with the public.
Here are links to the web pages of some of the scholars whose work is featured in the reading list:
Stefania
Albanesi
Alberto
Alesina
Fernando Alvarez
Laurence Ball
Robert
J. Barro
Gianluca Benigno
Pierpaolo Benigno
Olivier J. Blanchard
Jess Benhabib
Ben S. Bernanke
Willem H. Buiter
Guillermo A. Calvo
Gabriele Camera
Matthew
B. Canzoneri
Charles
T. Carlstrom
Stephen G.
Cecchetti
Roberto Chang
Richard Clarida
V. V. Chari
Lawrence
J. Christiano
John
H. Cochrane
Thomas F. Cooley
Dean Corbae
Giancarlo Corsetti
Michael B. Devereux
Michael
Dotsey
Allan Drazen
William Dupor
Martin Eichenbaum
Charles Engel
Jon Faust
Martin
Feldstein
Jordi Galí
Petra
Geraats
Mark Gertler
Fabio Ghironi
Marc
P. Giannoni
Francesco
Giavazzi
Marvin
S. Goodfriend
Seppo Honkapohja
Peter Ireland
Henrik
Jensen
Patrick J. Kehoe
Jinill Kim
Narayana Kocherlakota
Kenneth
N. Kuttner
Philip Lane
Eric M. Leeper
N.
Gregory Mankiw
Bennett
T. McCallum
Ellen
R. McGrattan
Enrique G. Mendoza
Ilian
Mihov
Tommaso Monacelli
Maurice
Obstfeld
Torsten
Persson
Paolo
Pesenti
Edward C. Prescott
Vincenzo Quadrini
Roberto Rigobon
Kenneth
S. Rogoff
Christina
D. Romer
David H.
Romer
Julio
J. Rotemberg
Thomas J. Sargent
Argia Sbordone
Stephanie
Schmitt-Grohé
Christopher A. Sims
Bruce D. Smith
Lars E. O. Svensson
Guido
Tabellini
John B.
Taylor
Cédric
Tille
Alberto
Trejos
Harald Uhlig
Martín Uribe
Carlos A. Végh
Andrés
Velasco
Neil
Wallace
Carl E. Walsh
Volker
Wieland
Alexander
L. Wolman
Michael Woodford
Randall D. Wright III
More scholars who focus on open economy issues appear in the web page on "Monetary Policy Rules in Open Economies" mentioned above as authors of papers. A number of contributions and contacts in this particular area of research are also listed in Brian Doyle's "New Open Economy Macroeconomics" home page.
Keep an eye on all these people's work: Their publications and ongoing research will give you an idea of how the field is evolving.
Giancarlo Corsetti's "Euro Homepage," Nouriel Roubini's "Global Macroeconomic and Financial Policy Site," and John Taylor's above mentioned "Monetary Policy Rule Home Page" should be among your bookmarks.
Larry Christiano teaches a graduate course on monetary policy at Northwestern University. The web page of his course is another invaluable source of references and inspiration. Here is the link to Larry Christiano's course page.
Comments and suggestions?
E-mail me at Fabio.Ghironi@bc.edu.