Bennett T. McCallum

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H. J. Heinz Professor of Economics

Teaching and Research Interests:

• Macroeconomic fluctuations, monetary theory and policy. Specific topics of ongoing concern include theories of the real effects of monetary policy, strategies for the conduct of monetary policy, macroeconomic consequences of alternative international monetary arrangements, and significance of multiple solutions in rational expectations analysis.

Useful Links:

• Vita
• Matlab files for RE calculations
• Older Research
• SOMC/Policy Papers
• Carnegie-Rochester Conference

Select Publications: 

• E-Stability vis-a-vis Determinacy Results for a Broad Class of Linear Rational Expectations Models
  Journal of Economic Dynamics and Control 31, April 2007; 1376-1391.
  
  
• Banking and Interest Rates in Monetary Policy Analysis: A Quantitative Exploration
  Journal of Monetary Economics 54, 2007.
  (With: Marvin Goodfriend)
  
  
• Multiple-Solution Indeterminacies in Monetary Policy Analysis
  Journal of Monetary Economics 50, July 2003; 1153-1175.
  
  
• Theoretical Analysis Regarding a Zero Lower Bound on Nominal Interest Rates
  Journal of Money, Credit, and Banking 32, Nov. 2000; 870-904.
  
  
• Rational Expectations and the Natural Rate Hypothesis: Some Consistent Estimates
  Econometrica 44, 1976; 43-52.
  
  

• International Monetary Economics, Oxford University Press, (January, 1996).
  
  
• Monetary Economics: Theory and Policy, Macmillan Publishing Company, (January, 1989).
  
  

Additional Publications: 

• Reconsideration of the P-Bar Model of Gradual Price Adjustment
  Euroopean Economic Review 52, 2008; 1480-1493.
  
  
• How Important is Money in the Conduct of Monetary Policy? A Comment
  Journal of Money, Credit, and Banking 40, Dec. 2008; 1783-1790.
  
  
• A Monetary Policy Rule for Automatic Prevention of a Liquidity Trap
  Takatoshi Ito and Andrew K. Rose, eds. Monetary Policy with Very Low Inflation in the Pacific Rim University of Chicago Press for NBER, 2006; 9-38.
  
  
• Misconceptions Regarding the Zero Lower Bound on Interest Rates
  Bank of Japan, Monetary and Economic Studies 24, Dec. 2006; 13-26.
  
  
• Simultaneous Equation Econometrics: The Missing Example
  Economic Inquiry 44, April 2006; 374-384.
  (With: Dennis Epple)
  
  
• Monetary and Fiscal Theories of the Price Level: The Irreconcilable Differences
  Oxford Review of Economic Policy 21, Winter 2005; 565-583.
  (With: Edward Nelson)
  
  
• Targeting vs. Instrument Rules for Monetary Policy
  Federal Reserve Bank of St. Louis Review 87, Sept./Oct. 2005; 597-611.
  (With: Edward Nelson)
  
  
• Long Run Monetary Neutrality and Contemporary Policy Analysis
  Bank of Japan, Monetary and Economic Studies 22, December 2004; 15-28.
  
  
• On the Relationship Between Determinate and MSV Solutions in Linear RE Models
  Economics Letters 84, July 2004; 55-60.
  
  
• Timeless Perspective versus Discretionary Monetary Policy in Forward-Looking Models
  Federal Reserve Bank of St.Louis Review 86, March/April 2004; 43-56.
  (With: Edward Nelson)
  
  
• Japanese Monetary Policy, 1991-2001
  Federal Reserve Bank of Richmond Economic Quarterly 89, Winter 2003; 1-31.
  
  
• Multiple-Solution Indeterminacies in Monetary Policy Analysis
  Journal of Monetary Economics 50, 07/01/2003; 1153-1175.
  
  
• Monetary Policy in Economies with Little or No Money
  Pacific Economic Review 9, 2004; 81-92.
  
  
• Is The Fiscal Theory of the Price Level Learnable?
  Scottish Journal of Political Economy 50, 11/01/03; 634-649.
  
  
• The Non-Optimality of Proposed Monetary Policy Rules Under Timeless Perspective Commitment
  Economics Letters 77, October 2002; 147-300.
  
  
• Recent Developments in Monetary Policy Analysis: The Roles of Theory and Evidence
  Federal Reserve Bank of Richmond Economic Quarterly 88, Winter 2002; 67-96.
  
  
• Indeterminacy, Bubbles, and the Fiscal Theory of Price Level Determination
  Journal of Monetary Economics 47, 2001; 19-30.
  
  
• An Optimizing IS-LM Specification for Monetary Policy and Business Cycle Analysis
  Journal of Money, Credit, and Banking 31, 08/01/1999; 296-316.
  (With: Edward Nelson)
  
  
• Role of the minimal state variable criterion in rational expectations models
  International Tax and Public Finance 6, 1999; 621-639.
  
  
• Nominal Income Targeting in an Optimizing Open-Economy Model
  Journal of Monetary Economics 43, 1999.
  (With: Edward Nelson)
  
  
• Performance of Operational Policy Rules in an Estimated Semi-Classical Structural Model
  Monetary Policy Rules, ed. John B. Taylor, 1999; 15-45.
  (With: Edward Nelson)
  
  

• "Issues in the Design of Monetary Policy Rules"
  in J. B. Taylor and M. Woodford (ed.) Handbook of Macroeconomics, North-Holland, (January, 1999).
  
  

Working Papers: 

• Research Note by George Evans
  November, 2009.
  
  
• Rejoinder to Cochrane. Note that a related research note by George Evans is included nearby.
  November, 2009.
  
  
• Inflation Determination with Taylor Rules: Is New-Keynesian Analysis Critically Flawed?
  November, 2009.
  
  
• Determinacy, Learnability, and Plausibility in Monetary Policy Analysis: Additional Results
  July, 2008.
  
  
• What is the Proper Perspective for Monetary Policy Optimality?
  December, 2005.
  
  
• Topics Concerning the Effectiveness of Stabilization Policies
  December, 2005.
  
  
• The Monetary Policy Transmission Mechanism in Industrial Countries
  July, 2004.
  
  
• On the Relationship Between Determinate and MSV Solutions in Linear RE Models
  September, 2003.
  
  
• Recent Developments in monetary policy analysis: The roles of theory and evidence
  February, 1999.
  
  
• Indeterminacy, Bubbles, and the Fiscal Theory of Price Level Determination
  January, 1998.
  
  
• Monetary Policy Rules for the Phillipines: An Introductory Study
  November, 1997.
  
  
• The Alleged Instability of Nominal Income Targeting
  August, 1997.
  
  

Awards:

• Honorary Advisor, Institute for Monetary and Economic Studies, Bank of Japan - 2003
• Annual Lecture, Julian Hodge Institute of Applied Macroeconomics, Cardiff - 2003
• Merrick Lecture, University of Virginia - 2000
• Homer Jones Memorial Lecture, FRB St. Louis - 1999
• Fellow of the Econometric Society - 1992-
• Journal of Money, Credit, and Banking Lecture - 1985
• Henry Thornton Lecture, City University, London - 1982

Editorial Boards:

• Journal of Monetary Economics
• Journal of Money, Credit and Banking
• Economics Letters
• Carnegie-Rochester Conference Series on Public Policy (Co-Editor), 1995-
• American Economic Review (Co-Editor), 1988-1991

Other Professional Activities:

• Research Associate, National Bureau of Economic Research (1979-)
• Visiting Scholar: IMF (1990)
• Visiting Scholar: Bank of Japan (1993)
• Visiting Scholar: Reserve Bank of New Zealand (1995)
• Member: Shadow Open Market Committee (2000-)
• International Research Fellow, Kiel Institute for World Economics (2002-)
• Research Consultant, Federal Reserve Bank of Richmond (1981-)
• Honorary Advisor, Institute for Monetary & Economic Studies, Bank of Japan (2003-)
• Fellow, CESifo Network, University of Munich (2003-)