TY  - GEN
ID  - heidok13117
KW  - inflation-gap persistence 
KW  -  Great Moderation 
KW  -  monetary policy 
KW  -  New Keynesian model 
KW  -  Taylor rule
AV  - public
TI  - Explaining Inflation-Gap Persistence by a Time-Varying Taylor Rule
Y1  - 2012///
N2  - In a simple New Keynesian model, we derive a closed form solution for the inflation-gap 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-gap 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. 
A1  - Conrad, Christian
A1  - Eife, Thomas A.
UR  - https://archiv.ub.uni-heidelberg.de/volltextserver/13117/
ER  -