Twelfth Annual Conference on Macroeconomics

NBER Reporter, Summer 1997 | Go to article overview

Twelfth Annual Conference on Macroeconomics


The NBER's Twelfth Annual Conference on Macroeconomics was held in Cambridge on April 4 and 5. The conference organizers, Ben S. Bernanke of Princeton University and Julio J. Rotemberg of MIT, put together this program:

Marvin Goodfriend, Federal Reserve Bank of Richmond, and Robert King, NBER and University of Virginia, "The New Neoclassical Synthesis and the Role of Monetary Policy."

Discussants: Ellen McGrattan, Federal Reserve Bank of Minneapolis, and Olivier J. Blanchard, NBER and MIT Julio J. Rotemberg, and Michael Woodford, NBER and Princeton University, "An Optimization-Based Econometric Framework for the Evaluation of Monetary Policy"

Discussants: Jeffrey Fuhrer, Federal Reserve Bank of Boston, and Bennett T. McCallum, NBER and Carnegie-Mellon University

Peter Klenow and Andres Rodriguez, University of Chicago, "The Neoclassical Revival in Growth Economics: Has it Gone too Far?"

Discussants: Charles Jones, Stanford University, and N. Gregory Mankiw, NBER and Harvard University Michael Gavin, Inter-American Development Bank, and Roberto Perotti, Columbia University "Fiscal Policy in Latin America" Discussants: Torsten Persson and Aaron Tornell, NBER and Harvard University

Martin S. Feldstein, NBER and Harvard University, and Andrew Samwick, NBER and Dartmouth College, "The Economics of Prefunding Social Security and Medicare Benefits."

Discussants: Rao Aiyagari, Federal Reserve Bank of Minneapolis, and Laurence J. Kotlikoff, NBER and Boston University

Christopher Carroll, NBER and Johns Hopkins University, and Wendy Dunn, Johns Hopkins University, "Unemployment Expectations, Jumping (S,s) Triggers, and Household Balance Sheets"

Discussants: Simons Gilchrist, Boston University, and Angus Deaton, NBER and Princeton University

The Neoclassical Synthesis of the 1960s was based on three sometimes conflicting principles of macroeconomics: that practical policy advice was an essential end; that short-run price stickiness was central to economic fluctuations; and that models should be based on optimization. Macroeconomics now is moving toward a New Neoclassical Synthesis, which Goodfriend and King describe. They find that the New Neoclassical Synthesis rationalizes an activist monetary policy: a simple system of inflation targets. Under this neutral monetary policy, real quantities evolve as suggested in the literature on real business cycles. The authors use the new synthesis to address several issues that must be resolved in order to make this inflation targeting regime practical, including: the response to oil shocks; the choice of price index; the design of a mandate; and the required structure of variations in short-term nominal interest rates when these are the monetary authority's instrument.

Rotemberg and Woodford consider a simple model of output, interest rate, and inflation determination in the United States, and use it to evaluate alternative rules by which the Fed may set interest rates. The model is derived from optimizing behavior under rational expectations, both on the part of the purchasers of goods (who choose quantities to purchase given the expected path of real interest rates) and on the part of the sellers of goods (who set prices on the basis of the expected evolution of demand). The authors find that the monetary policy rule that most reduces the variability of inflation (and is best on this account) requires highly variable interest rates, which in turn is possible only in the case of a high average inflation rate. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Twelfth Annual Conference on Macroeconomics
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.