Economics

Permanent URI for this collectionhttps://hdl.handle.net/10679/316

Browse

Browsing by Subject "Business cycle"

Filter results by typing the first few letters
Now showing 1 - 1 of 1
  • Thumbnail Image
    ArticlePublicationOpen Access
    The productivity gap: Monetary policy, the subprime boom, and the post-2001 productivity surge
    (Elsevier, 2015-03) Selgin, G.; Beckworth, D.; Bahadır, Berrak; Economics; BAHADIR, Berrak
    It is widely believed that, in the wake of the dot.com crash, the Fed kept the federal funds target rate too low for too long, inadvertently contributing to the subprime boom. We attribute this and other Fed departures from a “neutral” policy stance to the Fed's failure to respond appropriately to exceptional rates of total factor productivity growth. We then show how the Fed, by adhering to a nominal GDP growth rate target, might have succeeded in maintaining such a neutral stance.