The Perils of Taylor Rules

By Jess Benhabib, Stephanie Schmitt-Grohé, Martin Uribe. Journal of Economics Theory, 2001

777 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/b285ca87f4f017c6a68e05b6fd59241b7e244c81

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Citations in the corpus

Using monetary policy to stabilize economic activity (2009, background): “Note that the right side of (9) depends on three policy instruments: the interest rate paid on reserves, the interest rate charged on borrowings, and the level of reserves.”
OccBin: A Toolkit for Solving Dynamic Models With Occasionally Binding Constraints Easily (2015, background): “These issues have been analyzed and discussed by, among others, Benhabib, Schmitt-Grohe, and Uribe (2001), Braun and Waki (2010), and Aruoba and Schorfheide (2013).”
Real Implications of the Zero Bound on Nominal Interest Rates (2003, background): “B plots the long run path of the price level under rule (2), and the point marked with an asterisk indicates a current period, where the nominal rate is zero, the price level 5”
Multiple-solution indeterminacies in monetary policy analysis (2003, background): “Prominent topics for which this type of indeterminacy is central to the analysis include (i) the “Taylor principle” [Clarida, Gali, and Gertler (1999, 2000), King (2000), Woodford (2001)]; (ii) inflation forecast targeting [Woodford (1994, 2002), Bernanke and Woodford (1996), Kerr and King (1996), C”
The science of monetary policy: an imperfect knowledge perspective (2018, neutral): “Second, Benhabib, Schmitt-Grohe, and Uribe (2001) demonstrate commitment to policy rules of the form (20), generally delivers local determinacy but global indeterminacy: among possible equilibria, there exist a continuum of equilibrium paths converging to a de ationary steady state.”