A note on extracting expectations for policy rates when deviations from the expectations hypothesis may be important, from Kim and Tanaka
A note by Claudia Sahm and Jason Sockin here
Research on the how demographics may have shaped recent trends in economic growth and real interest rates by Etienne Gagnon, Benjamin K. Johannsen, and J. David Lopez-Salido here
Labor Day weekend brings the end of summer. Some papers you may have missed:
Nakata and Schmidt: A description of how to adjust settings from simple Taylor rules to achieve an inflation target, on average, when interest rates are affected by the effective lower bound.
Ajello, Laubach, Lopez-Salido, and Nakata find that Bayesian and robust central banks will respond more aggressively to financial instability when the probability and severity of financial crises are uncertain.
David Reifschneider suggests that large-scale asset purchases and forward guidance about the future path of the federal funds rate should be able to provide enough additional accommodation to fully compensate for a more limited to cut short-term interest rates in most, but probably not all, circumstances.
My slides for the SF Fed Symposium, “The Future of Inflation”: While the reduced-form Phillips Curve appears near death, this can be explained by structural factors and the links between inflation and resource utilization are alive and well.
A lot of related research is reviewed, including reduced-form empirical work (Ball and Mazumder (2011), Blanchard (2016)), the literature on inflation and long-term unemployment (Ball and Mazumder (2014), Kiley (2015)), lack of participation as slack (Erceg and Levin (2014)), DSGE models (Del Negro, Giannoni, and Schorfheide (2015), Christiano, Eichenbaum, and Trabandt (2015), Chung, Herbst, and Kiley (2015)), and expectations (Coibion and Gorodnichenko (2015), Kiley (2016)).