NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Estimating the Long-Run Relationship Between Interest Rates and Inflation: A Response to McCallum

Lawrence H. Summers

NBER Working Paper No. 1448 (Also Reprint No. r1379)
Issued in April 1990
NBER Program(s):   EFG   ME

This note demonstrates that Bennett McCallum's recent critique of low frequency estimates of macro-economic relationships is of little empirical significance. It also demonstrates that readily available and frequently used techniques can be used to diagnose the problem McCallum raises. Finally, it shows that the standard critique of expectational distributed lags is not warranted once the role of learning by economic agents is recognized.

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Document Object Identifier (DOI): 10.3386/w1448

Published: Summers, Lawrence H. "Estimating the Long-Run Relationship between Interest Rates and Inflation." From Journal of Monetary Economics, Vol. 18, No. 1, pp. 77-86, (July 1986). citation courtesy of

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