Monetary policy, oil shocks, and TFP
Subtitle: accounting for the decline in U.S. volatility
By: Sylvain Leduc and Keith Sill
Contributors: Sill, Keith; Board of Governors of the Federal Reserve System (U.S.)
Series: International finance discussion papers -- no. 873; International finance discussion papers (Online) -- no. 873.
Publisher: Federal Reserve Board
Published: 2006
Place of publication: Washington, D.C
Language: eng
Format: [electronic resource] :
Description: "An equilibrium model is used to assess the quantitative importance of monetary policy for the post-1984 decline in U.S.  inflation and output volatility.  The principal finding is that monetary policy played a substantial role in reducing inflation volatility, but a small role in reducing real output volatility.  The model attributes much of the decline in real output volatility to smaller TFP shocks.  We also investigate the pattern of output and inflation volatility under an optimal monetary policy counterfactual.  We find that real output volatility would have been somewhat lower, and inflation volatility substantially lower, had monetary policy been set optimally"--Federal Reserve Board web site.
Notes: Title from PDF file as viewed on 1/11/2007.

Includes bibliographical references.

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Mode of access: World Wide Web.