Did the Fed follow an implicit McCallum rule during the Great Depression?
Olivier Damette
(1, 2, 3)
,
Antoine Parent
(4, 5, 6)
1
ENGREF -
Ecole Nationale du Génie Rural, des Eaux et des Forêts
2 BETA - Bureau d'Économie Théorique et Appliquée
3 LEF - Laboratoire d'Economie Forestière
4 IXXI - Institut Rhône-Alpin des systèmes complexes
5 IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon
6 LET - Laboratoire d'économie des transports
2 BETA - Bureau d'Économie Théorique et Appliquée
3 LEF - Laboratoire d'Economie Forestière
4 IXXI - Institut Rhône-Alpin des systèmes complexes
5 IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon
6 LET - Laboratoire d'économie des transports
Olivier Damette
- Fonction : Auteur
- PersonId : 18848
- IdHAL : olivier-damette
- ORCID : 0000-0002-7520-3780
- IdRef : 120684209
Antoine Parent
- Fonction : Auteur
- PersonId : 172038
- IdHAL : antoine-parent
- ORCID : 0000-0001-5087-9488
- IdRef : 030299489
Résumé
In this paper we address the issue of the consistency of the Fed action during the interwar period using a McCallum base money rule. Developing backward-looking models, forward-looking models and counterfactual historical simulation, we found that the McCallum rule provides interesting historical lessons to identify possible driving forces of its policy setting. We give evidence that over the period 1921–1933 the Fed followed an imperfect and partial McCallum rule, moving the money base instrument according to an output target but not correcting for the deviation from this target. Lastly, our outcomes highlight that during the Great Depression the Fed was probably more active than suggested in the literature.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Did the Fed follow an implicit McCallum rule during the Great Depression?
|
Résumé |
en
In this paper we address the issue of the consistency of the Fed action during the interwar period using a McCallum base money rule. Developing backward-looking models, forward-looking models and counterfactual historical simulation, we found that the McCallum rule provides interesting historical lessons to identify possible driving forces of its policy setting. We give evidence that over the period 1921–1933 the Fed followed an imperfect and partial McCallum rule, moving the money base instrument according to an output target but not correcting for the deviation from this target. Lastly, our outcomes highlight that during the Great Depression the Fed was probably more active than suggested in the literature.
|
Auteur(s) |
Olivier Damette
1, 2, 3
, Antoine Parent
4, 5, 6
1
ENGREF -
Ecole Nationale du Génie Rural, des Eaux et des Forêts
( 11567 )
- 19 avenue du Maine 75732 PARIS CEDEX 15
- France
2
BETA -
Bureau d'Économie Théorique et Appliquée
( 93745 )
- Université de Lorraine, UFR Droit Sciences Economiques et Gestion, 13 place Carnot CO 70026, 54035 Nancy Cedex
Université de Strasbourg, Faculté des Sciences Economiques et de Gestion, 61 avenue de la Forêt Noire 67085 Strasbourg Cedex
- France
3
LEF -
Laboratoire d'Economie Forestière
( 135770 )
- F-54000 Nancy
- France
4
IXXI -
Institut Rhône-Alpin des systèmes complexes
( 1079001 )
- 46, allée d'Italie 69007 LYON
- France
5
IEP Lyon -
Sciences Po Lyon - Institut d'études politiques de Lyon
( 59112 )
- 14 avenue Berthelot - 69365 Lyon cedex 07
- France
6
LET -
Laboratoire d'économie des transports
( 738 )
- ISH - 14, avenue Berthelot - 69363 Lyon cedex 07
- France
|
Nom de la revue |
|
Langue du document |
Anglais
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Internationale
|
Date de publication |
2016-01
|
Volume |
52
|
Numéro |
Part A
|
Page/Identifiant |
226–232
|
Public visé |
Scientifique
|
Sous-type de document pour les Articles |
Research article
|
Version du document |
version éditeur
|
Domaine(s) |
|
Voir aussi |
|
Mots-clés |
en
Monetary cliometrics, Crisis of 1929, Monetary rule, Central banks
|
DOI | 10.1016/j.econmod.2014.11.012 |
ProdINRA | 349716 |
UT key WOS | 000367119600021 |
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