tag:blogger.com,1999:blog-5713178645208582139.post8997879070493319970..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Zero Bound Smackdown IIDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-5713178645208582139.post-37728878731392029922010-03-17T12:52:53.821-05:002010-03-17T12:52:53.821-05:00It seems to me that a McCallum type monetary rule ...It seems to me that a McCallum type monetary rule could handle zero bound interest rate with flying colors, particularly if the rule used got a good handle on changes in the velocity of money.<br />http://en.wikipedia.org/wiki/McCallum_rule<br /><br />What's needed is for someone to run some simulations on how well such a rule would have handled The Great Recession.Richard A.https://www.blogger.com/profile/02266854778511339492noreply@blogger.com