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McCallum, Bennett T.

Overview
Works: 193 works in 907 publications in 1 language and 5,850 library holdings
Genres: Conference proceedings  Case studies 
Roles: Editor, Honoree, Artist
Classifications: HB1, 332.042
Publication Timeline
Key
Publications about Bennett T McCallum
Publications by Bennett T McCallum
Most widely held works by Bennett T McCallum
International monetary economics by Bennett T McCallum( Book )
10 editions published between 1995 and 1996 in English and held by 451 libraries worldwide
International Monetary Economics presents a brief introduction to the major topics of the subject area together with an analytical framework that is designed to facilitate a better understanding of international monetary economics. The text concentrates on concepts and relationships involving exchange rates and balance-of-payments magnitudes; the construction and manipulation of a small but versatile model of exchange rate and balance-of-payment behavior; and the description of current and prospective arrangements for multicountry cooperation in Europe and elsewhere
Monetary economics : theory and policy by Bennett T McCallum( Book )
18 editions published between 1989 and 1997 in English and held by 341 libraries worldwide
Money, cycles, and exchange rates : essays in honor of Allan H. Meltzer ( Book )
9 editions published in 1988 in English and held by 223 libraries worldwide
Inflation targeting in Canada, New Zealand, Sweden, the United Kingdom, and in general by Bennett T McCallum( Book )
15 editions published between 1996 and 1998 in English and held by 114 libraries worldwide
This paper begins with a description of the inflation targeting arrangements currently in place in the four above-mentioned countries and their performance records through mid-1995 are reviewed. It is argued, however, that too little time has passed for conclusions to be drawn, so that tentative evaluations of inflation targeting need to be based on theoretical analysis and more generalized historical experiences. Accordingly, two alternative rationalizations are considered, one stemming from the literature on dynamic inconsistency and the other based on more pragmatic considerations. In addition, it is asked whether some other nominal magnitude might be preferable as a target variable and the issue of growth-rate versus growing-level target paths is addressed
The alleged instability of nominal income targeting by Bennett T McCallum( Book )
15 editions published in 1997 in English and held by 114 libraries worldwide
Abstract: Recently it has been argued that a monetary policy of nominal income and targeting" would result in dynamically unstable processes for output and inflation. That results holds in a" theoretical model that includes backward-looking IS an Phillips curve relations rather special and theoretically unattractive. The present paper demonstrates that replacement of" the special Phillips curve with one of several more plausible specifications overturns the" instability result, whether or not the IS equation is replaced with a forward-looking version. " Thus the instability result is quire fragile and therefore provides almost no basis for a negative" judgment regarding nominal income targeting
Monetary policy for an open economy : an alternative framework with optimizing agents and sticky prices by Bennett T McCallum( Book )
18 editions published in 2001 in English and held by 96 libraries worldwide
Abstract: The new open-economy macroeconomics' seeks to provide an improved basis for monetary and exchange-rate policy through the construction of open-economy models that feature rational expectations, optimizing agents, and slowly adjusting prices of goods. This paper promotes an alternative approach for constructing such models by treating imports not as finished consumer goods but rather as raw-material inputs to the home economy's productive process. This treatment leads to a clean and simple theoretical structure that has some empirical attractions as well. A particular small-economy model is calibrated and its properties exhibited, primarily by means of impulse response functions. The preferred variant is shown to feature a pattern of correlations between exchange-rate changes and inflation that is more realistic than provided by a more standard specification. Important recent events are interpreted in light of the alternative models
Indeterminacy, bubbles, and the fiscal theory of price level determination by Bennett T McCallum( Book )
11 editions published in 1998 in English and held by 91 libraries worldwide
Abstract: The recently-developed fiscal theory of price level determination contends that there is an important class of policy rules in which there exists a unique rational expectations solution that shows the price level to be dependent upon fiscal policy and independent of monetary variables. The present paper argues, however, that there is an alternative solution to these models that has entirely traditional (or monetarist') properties. This latter solution is perhaps the more plausible since it is the solution that is typically regarded as the bubble-free fundamentals' solution. The argument involves a respecification of feasible instrument variables
Performance of operational policy rules in an estimated semi-classical structural model by Bennett T McCallum( Book )
10 editions published in 1998 in English and held by 90 libraries worldwide
Abstract: This paper reports results of simulation exercises that explore several questions relating to the design of rules for monetary policy. Emphasis is given to issues raised by the concept of rule operationality, i.e., reliance on feasible instrument variables and information sets. Many of the results pertain to rules of the Taylor type -- i.e., with an interest rate instrument set in response to inflation and output-gap measures -- but some are reported for rules using a nominal income target and/or a monetary base instrument. The macroeconomic model utilized is small in scale but features a specification designed to represent rational dynamic optimizing choices by the economy's private agents. Saving and portfolio-balance behavior are expressed by optimizing versions of exceptional IS and LM functions, with gradual price adjustments specified differently in two variants of the model. One variant uses the well-known Calvo-Rotemberg price adjustment relation, whereas the second employs a newly-rationalized version of the Mussa-McCallum-Barro-Grossman P-bar model. Parameter values are estimated by instrumental variables on U.S. quarterly data for 1995-1996
Specification of policy rules and performance measures in multicountry simulation studies by Bennett T McCallum( Book )
15 editions published between 1992 and 1994 in English and held by 89 libraries worldwide
Much recent analysis of international monetary and fiscal policy, such as the choice of an exchange-rate regime or the design of a policy coordination scheme, has been conducted by stochastic simulations with multicountry econometric alternative policy rules of a particular form that calls for departures of a policy instrument, from some "baseline" reference path, that are proportional to deviations of a specified target variable from its own baseline path. The present paper argues, however, that this standard rule form is seriously defective for evaluating such issues because the implied rules (1) often fail to be operational and (2) have associated performance measures that can be misleading in important cases. An example is presented that concerns the international "assignment problem" of optimally pairing instruments with policy objectives
Recent developments in monetary policy analysis : the roles of theory and evidence by Bennett T McCallum( Book )
11 editions published in 1999 in English and held by 86 libraries worldwide
Abstract: Both academic thinking about monetary economics and the practice of monetary policy have changed dramatically since 1971-1973, when the rational expectations revolution was beginning and the Bretton Woods system was crumbling. The present paper considers whether the various changes that have taken place were influenced primarily by economic theory or by empirical evidence-or by a combination of the two. Monetary economics, like macroeconomics more generally, passed through the rational expectations period into one dominated by real business cycle (RBC) analysis, which denies monetary policy any significant role in the generation or the dampening of cyclical fluctuations in crucial real variables. Recently, however, the analysis of monetary policy by both academic and central bank economists has been increasingly conducted in small quantitative structural models that combine the optimizing aspect of RBC analysis with various assumptions implying real effects of monetary policy actions due to slow adjustment of nominal prices. These models therefore attempt to combine rather strict theoretical discipline with features that permit an enhanced degree of empirical veracity. It is apparent, accordingly, that both theoretical and empirical analysis have been essential in bringing about alterations in monetary policy analysis between 1971-1973 and 1998
Crucial issues concerning central bank independence by Bennett T McCallum( Book )
12 editions published between 1996 and 1997 in English and held by 85 libraries worldwide
This paper argues, first, that it is inappropriate to presume that central banks will, in the absence of any tangible precommitment technology, inevitably behave in a discretionary' fashion that implies an inflationary bias. Furthermore, there is no necessary tradeoff between flexibility and commitment.' Second, to the extent that the absence of any precommitment technology is nevertheless a problem, it will apply to a consolidated central bank-plus-government entity as well as to the central bank alone. Thus contracts between governments and central banks do not overcome the motivation for dynamic inconsistency, they merely relocate it. Several implications are discussed
An optimizing IS-LM specification for monetary policy and business cycle analysis by Bennett T McCallum( Book )
12 editions published between 1996 and 2000 in English and held by 84 libraries worldwide
This paper asks whether relations of the IS-LM type can sensibly be used for the aggregate demand portion of a dynamic optimizing general equilibrium model intended for analysis of issues regarding monetary policy and cyclical fluctuations. The main result is that only one change -- the addition of a term regarding expected future income -- is needed to make the IS function match a fully optimizing model, whereas no changes are needed for the LM function. This modification imparts a dynamic, forward-looking aspect to saving behavior and leads to a model of aggregate demand that is tractable and usable with a wide variety of aggregate supply specifications. Theoretical applications concerning price level determinacy and inflation persistence are included
Nominal income targeting in an open-economy optimizing market by Bennett T McCallum( Book )
10 editions published in 1998 in English and held by 84 libraries worldwide
Theoretical issues pertaining to monetary unions by Bennett T McCallum( Book )
12 editions published between 1999 and 2003 in English and held by 81 libraries worldwide
Abstract: The optimal currency area (OCA) concept is central to the economic analysis of monetary unions, as it clearly identifies the relevant optimizing tradeoff: extension of the area over which a single currency is used enhances allocative efficiency but reduces the possibility of tailoring monetary policy to the needs of different areas. Empirical work has verified the importance of various features of economies that make them strong or weak candidates for a common currency arrangement, but existing studies do not permit actual quantification of costs and benefits. Thus the OCA concept remains less than fully operational. A second relevant body of theory is that pertaining to currency crises. Formal models clarify various points concerning speculative attacks on fixed exchange rates, and show how abrupt reserve losses and depreciations can occur rationally at times when no major shocks are hitting the system. These models support the notion that a fixed (but adjustable) exchange- rate regime is not a viable option for most nations, given high mobility of financial capital. Also discussed is the recently- developed fiscal theory of price level determination, which if valid would have major implications for monetary-fiscal arrangements in currency unions. This theory does not contend that fiscal behavior drives an accommodative monetary authority, but rather that the price level roughly mimics the pattern of the government bond stock rather than base money when their paths differ drastically. An example is exposited in which there are two rational expectations solutions for an economy with a constant money supply: a traditional solution in which the price level is also constant and a fiscalist solution in which the price level and bond stock both explode as time passes. These solutions represent competing hypotheses about the behavior of actual economies; the paper suggests that the former is more likely to prevail in actuality
Monetary policy and the term structure of interest rates by Bennett T McCallum( Book )
11 editions published in 1994 in English and held by 81 libraries worldwide
Abstract: This paper addresses a prominent empirical failure of the expectations theory of the term structure of interest rates under the assumption of rational expectations. This failure concerns the magnitude of slope coefficients in regressions of short rate (or long- rate) changes on long-short spreads. It is shown that the anomalous empirical findings can be rationalized with the expectations theory by recognition of an exogenous random (but possibly autoregressive) term premium plus the assumption that monetary policy involves smoothing of an interest rate instrument -- the short rate -- together with the responses to the prevailing level of the spread
Neoclassical vs. endogenous growth analysis : an overview by Bennett T McCallum( Book )
12 editions published between 1996 and 1997 in English and held by 80 libraries worldwide
This paper begins with an exposition of neoclassical growth theory, including several analytical results such as the distinction between golden-rule and optimal steady states. Next it emphasizes that the neoclassical approach fails to provide any explanation of steady-state growth in per capita values of output and consumption, and also cannot plausibly explain actual growth differences by reference to transitional episodes. Three types of endogenous growth models, which attempt to provide explanations of ongoing per-capita growth, are presented and discussed. The likelihood of strictly justifying steady-state growth with these models is very small, since it would require highly special parameter values, but the models' predictions may be reasonably accurate nevertheless
Theoretical analysis regarding a zero lower bound on nominal interest rates by Bennett T McCallum( Book )
11 editions published in 2000 in English and held by 79 libraries worldwide
Abstract: This paper explores several issues concerning a possible zero lower bound (ZLB) including its theoretical rationale; the magnitude of effects of low sustained inflation on real interest rates; the validity of analyzing monetary policy in models with no monetary variables; and the dynamic stabilizing properties of Taylor rules in a ZLB context. The most important argument, however, is that if the short nominal rate is immobilized at zero, there nevertheless exists a route for monetary stabilization policy to be effective-- via the foreign exchange market. Its quantitative importance is examined in a calibrated, optimizing, open-economy model
Roles of the minimal state variable criterion in rational expectations models by Bennett T McCallum( Book )
9 editions published in 1999 in English and held by 78 libraries worldwide
Two fallacies concerning central bank independence by Bennett T McCallum( Book )
10 editions published in 1995 in English and held by 78 libraries worldwide
Abstract: This paper takes issue with two basic conclusions prevalent in the literature on central bank behavior. First, the paper argues that it is inappropriate to presume that central banks will, in the absence of any precommitment technology, necessarily behave in a 'discretionary' fashion that implies an inflationary bias. Since there is no functional connection between average rates of money creation (or inflation) and policy responsiveness to cyclical disturbances, it is entirely feasible for the bias to be avoided. In other words, there is no necessary tradeoff between 'flexibility and commitment.' Second, to the extent that the absence of any absolute precommitment technology is nevertheless a problem, it will apply to a consolidated central bank plus government entity as well as to the central bank alone. Thus contracts between governments and central banks do not overcome the motivation for dynamic inconsistency, they merely relocate it
Issues in the design of monetary policy rules by Bennett T McCallum( Book )
11 editions published between 1997 and 1999 in English and held by 78 libraries worldwide
Abstract: Topics covered in this survey paper include the following: distinguishing rules from discretion in practice; the feasibility of rule-like behavior by an independent central bank; optimal control vs. robustness as research strategies; choice among target variables; growth-rate vs. growing-level target paths; feasibility of interest rate and monetary base instruments; nominal indeterminacy as distinct from solution multiplicity; root-mean-square performance measures with interest rate and monetary base instruments; operationality of rule specifications; stochastic vs. counterfactual historical simulation procedures; interactions between monetary and fiscal policies; and the fiscal theory of the price level
 
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Alternative Names
Mac Callum Bennett T.
MacCallum Bennett T.
MacCallum, Bennett T. 1935-
Mc Callum Bennett T.
Mc Callum, Bennett T. 1935-
McCallum, B. T. 1935-
McCallum, Bennett T.
McCallum, Bennett Tarlton 1935-
Tarlton McCallum, Bennett 1935-
Languages
English (242)
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