TY  - JOUR
AU  - Cochrane,John H.
TI  - Identification with Taylor Rules: A Critical Review
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13410
PY  - 2007
Y2  - September 2007
UR  - http://www.nber.org/papers/w13410
L1  - http://www.nber.org/papers/w13410.pdf
N1  - Author contact info:
John H. Cochrane
Graduate School of Business
University of Chicago
5807 S. Woodlawn
Chicago, IL  60637
Tel: 773/702-3059
Fax: 773/702-0458
E-Mail: john.cochrane@gsb.uchicago.edu
AB  - The parameters of the Taylor rule relating interest rates to inflation and other variables are not identified in new-Keynesian models. Thus, Taylor rule regressions cannot be used to argue that the Fed conquered inflation by moving from a "passive" to an "active" policy in the early 1980s.
ER  -