Macro Musings with David Beckworth cover image

Ed Nelson on the Life, Work, and Legacy of Bennett McCallum

Macro Musings with David Beckworth

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The Significance of Ben's Paper in Monetary Economics

This chapter discusses a paper published by Ben in 1976 that focuses on estimating rational expectations models and serves as a precursor to the generalized method of moments (GMM). It explains how the paper introduced a procedure similar to instrumental variables or two-stage least squares, and its influence on the New Keynesian literature.

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