eprintid: 11043
rev_number: 11
eprint_status: archive
userid: 1
dir: disk0/00/01/10/43
datestamp: 2010-09-16 11:30:31
lastmod: 2015-12-31 11:13:19
status_changed: 2012-08-15 08:55:30
type: workingPaper
metadata_visibility: show
creators_name: Conrad, Christian
creators_name: Eife, Thomas A.
title: Explaining Inflation Persistence by a Time-Varying Taylor Rule
ispublished: pub
subjects: 330
divisions: 181000
keywords: inflation persistence , Great Moderation , monetary policy , New Keynesian model , Taylor rule
abstract: In a simple New Keynesian model, we derive a closed form solution for the inflation persistence parameter as a function of the policy weights in the central bank’s Taylor rule. By estimating the time-varying weights that the FED attaches to inflation and the output gap, we show that the empirically observed changes in U.S. inflation persistence during the period 1975 to 2010 can be well explained by changes in the conduct of monetary policy. Our findings are in line with Benati’s (2008) view that inflation persistence should not be considered a structural parameter in the sense of Lucas.
abstract_translated_lang: eng
date: 2010
date_type: published
id_scheme: DOI
id_number: 10.11588/heidok.00011043
schriftenreihe_cluster_id: sr-3
schriftenreihe_order: 0504
ppn_swb: 636402320
own_urn: urn:nbn:de:bsz:16-opus-110433
language: eng
bibsort: CONRADCHRIEXPLAINING2010
full_text_status: public
citation:   Conrad, Christian ; Eife, Thomas A.  (2010) Explaining Inflation Persistence by a Time-Varying Taylor Rule.  [Working paper]     
document_url: https://archiv.ub.uni-heidelberg.de/volltextserver/11043/1/Conrad_Eife_2010_dp504.pdf