{
  "title": "Dissecting Taylor Rules in a Structural VAR",
  "publication": "IMF Working Papers, January 1, 2010",
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  "summary": "This paper uncovers Taylor rules from estimated monetary policy reactions using a structural VAR on U.S. data from 1959 to 2009. These Taylor rules reveal the dynamic nature of policy responses to different structural shocks. We find that U.S.",
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    {
      "heading": "Summary",
      "content": "- The paper uncovers Taylor rules from estimated monetary policy reactions using a structural VAR on U.S. data from 1959 to 2009.\n- These Taylor rules reveal the dynamic nature of policy responses to different structural shocks.\n- The authors find that U.S. monetary policy has been far more responsive over time to demand shocks than to supply shocks, and more aggressive toward inflation than output growth.\n- The estimated dynamic policy coefficients characterize the style of policy as a \"bang-bang\" control for the pre-1979 period and as a gradual control for the post-1979 period."
    },
    {
      "heading": "Methodology",
      "content": "- Approach: Structural VAR applied to U.S. data.\n- Sample period: 1959 to 2009.\n- Key technical elements mentioned: spectral decomposition, structural VAR, dynamic policy coefficients.\n- Focus variables and concepts: Taylor rule, central bank policy rate, GDP deflator, inflation, output growth, supply shocks, endogenous monetary policy."
    },
    {
      "heading": "Key Findings and Results",
      "content": "- Monetary policy responsiveness:\n  - Far more responsive over time to demand shocks than to supply shocks.\n  - More aggressive toward inflation than output growth.\n- Policy style over time:\n  - Pre-1979: characterized as \"bang-bang\" control.\n  - Post-1979: characterized as gradual control.\n- Subject areas covered include: Business cycles; Central bank policy rate; Economic growth; Economic theory; Financial services; Inflation; Prices; Production; Production growth; Supply shocks.\n\n---\n\n Content in this bundle\n\n- wp1020\n  - wp1020 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp1020 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/dissecting-taylor-rules-in-a-structural-var-23571"
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    "Authors: Woon Gyu Choi, Yi Wen",
    "Published: January 1, 2010",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451962291.001",
    "The paper uncovers Taylor rules from estimated monetary policy reactions using a structural VAR on U.S. data from 1959 to 2009.",
    "These Taylor rules reveal the dynamic nature of policy responses to different structural shocks.",
    "The authors find that U.S. monetary policy has been far more responsive over time to demand shocks than to supply shocks, and more aggressive toward inflation than output growth.",
    "The estimated dynamic policy coefficients characterize the style of policy as a \"bang-bang\" control for the pre-1979 period and as a gradual control for the post-1979 period.",
    "Approach: Structural VAR applied to U.S. data.",
    "Sample period: 1959 to 2009.",
    "Key technical elements mentioned: spectral decomposition, structural VAR, dynamic policy coefficients.",
    "Focus variables and concepts: Taylor rule, central bank policy rate, GDP deflator, inflation, output growth, supply shocks, endogenous monetary policy.",
    "Monetary policy responsiveness:",
    "Policy style over time:",
    "Subject areas covered include: Business cycles; Central bank policy rate; Economic growth; Economic theory; Financial services; Inflation; Prices; Production; Production growth; Supply shocks.",
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