Interest Rate Determination Rule: Test of the Taylor Rule in the UK

Interest Rate Determination Rule: Test of the Taylor Rule in the UK November 2002 Macroeconomic Themes:19

Background Literature Macroeconomic Themes:19

Research in Time Inconsistency, Policy Co-ordination and Macroeconomic Themes:19

Friedman (1966, 1968) and Phelps (1967) natural rate of unemployment hypothesis Macroeconomic Themes:19

Aggregate Supply and Demands Macroeconomic Themes:19

Labour Market Equilibrium and Aggregate Supply Macroeconomic Themes:19

Impact of Monetary Policy in the Short and the Long Run Macroeconomic Themes:19

Policy Rule, Discretion, Cheating and Time Inconsistency in Economic Policy Making Macroeconomic Themes:19

Fiscal and Monetary Policy Game in a Diagram Macroeconomic Themes:19

Three Equations of the Interest Determination Rule: Taylor Rule Macroeconomic Themes:19

Reduced Form Equation of the Interest Determination Model Macroeconomic Themes:19

Natural rate of Interest: Steady State Macroeconomic Themes:19

General Solution of the Interest Rule Model Macroeconomic Themes:19

Convergence or Divergence from the Steady State Macroeconomic Themes:19

Data Set Used for the Interest Rate Rule Macroeconomic Themes:19

Drawbacks of Single Equation Estimation Macroeconomic Themes:19

Better Fit From the Simultaneous Estimation Macroeconomic Themes:19

Actual and Predicted Interest from the Single Equation Method Macroeconomic Themes:19

Actual and Predicted Interest from the Simultaneous Equation Method Macroeconomic Themes:19

Main Points of this Paper Macroeconomic Themes:19

References-1 Macroeconomic Themes:19

References-2 Macroeconomic Themes:19

Interest Rate Determination Rule: Test of the Taylor Rule in the UK