Identification with Taylor Rules
Subtitle: a critical review
By: John H. Cochrane.
Contributors: National Bureau of Economic Research.
Series: NBER working paper series -- no. 13410.; Working paper series (National Bureau of Economic Research) -- working paper no. 13410.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, Mass
Language: eng
Number of pages: 43
Subjects: Inflation (Finance) -- Mathematical models
Description: The parameters of the Taylor rule relating interest rates to inflation and other variables are not identified in new-Keynesian models. Thus, Taylor rule regressions cannot be used to argue that the Fed conquered inflation by moving from a "passive" to an "active" policy in the early 1980s.
Notes: "September 2007"

Includes bibliographical references (p. 41-43).

Also available in PDF from the NBER World Wide Web site (www.nber.org).