Further empirical evidence of nonlinearity in the us monetary policy rule

@inproceedings{Koo2010FurtherEE,
  title={Further empirical evidence of nonlinearity in the us monetary policy rule},
  author={Jahyun Koo and Ivan Paya and David Peel},
  year={2010}
}
Given conflicting results on whether the US monetary policy rule exhibited nonlinearity in the post-war period we employ a new Granger non-causality nonlinearity test and non-parametric procedures to re-examine the issue. Both procedures suggest that the Fed followed a nonlinear Taylor rule with respect to expected inflation and expected output gap prior to 1979 but not post 1982. 

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