[自然科学]Is the Taylor Rule the same as the Friedman Rule.pdfVIP

‘Is the Taylor Rule the same as the Friedman Rule?’z ¤ Naveen Srinivasan , Graduate Student, Department of Economics, Cardi¤ Business School, UK Laurian Lungu, Graduate Student, Department of Economics, Cardi¤ Business School, UK Patrick Minford, Professor of Applied Economics, Cardi¤ Business School, UK and CEPR —————————– z The authors thank James Davidson, David Peel, and seminar participants at the University of Wales Economics Colloquium, Gregynog, June 2000. Thanks also to David Meenagh and Ruthira Naraidoo f or research assistance. ¤Corresponding author. Address: Cardi¤ Business School, Cardi¤ University, Cardi¤ CF1 3EU, United Kingdom. Tel: +44 (0) 29 Fax: +44 (0) 29 Email: srinivasannk@cf .ac.uk 1 Abstract Our objective in this paper has been to provide more theoretically coherent micro- foundations for monetary policy rules in response to Lucas’s (1976) critique of econo- metric policy evaluation and, more importantly, to show that the Taylor rule can be derived via Friedman’s k% money supply rule. A key di¤erence with respect to the traditional IS-LM framework, is that, the aggregate decision rules evolve explicitly from optimisation by households and …rms. We conduct counterfactual historical analysis - to compare and contrast Friedman’s rule alongside Taylor’s (1993) rule. JEL classi… cations: D5, D58, E0, E5 Keywords: representative agent models; monetary policy rules ———————————————————————– Naveen Srinivasan, Graduate Student, Department of Economics, Cardi¤ Business School, UK Laurian Lungu, Graduate Student, Department of Economics, Cardi¤ Business School, UK Patrick Minfor