Fed paper challenges New Keynesian orthodoxy

fedres

The assumptions underpinning central bank models worldwide can create "somewhat extreme and implausible results", which are subsequently used to inform policy-making, according to research published yesterday (April 16) by the Federal Reserve.

The working paper, Policy paradoxes in the New Keynesian model, by Michael Kiley, an associate director in the office of financial stability policy and research, compares the conclusions of the widely used sticky-price formulation, with an alternative

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.