196 posts on "Monetary Policy"
November 27, 2013
Has the Fed Stabilized the Price Level?
Marc P. Giannoni and Hannah Herman The Federal Reserve Reform Act of 1977 established the monetary policy objectives of maximum employment, stable prices, and moderate long-term interest rates. The goal of “stable prices” has long been understood to mean a low positive inflation rate. On January 25, 2012, the Federal Open Market Committee (FOMC) explicitly […]
November 25, 2013
A Way With Words: The Economics of the Fed’s Press Conference
When central bankers speak, traders, journalists, and politicians listen with bated breath.
November 13, 2013
On the Design of Monetary and Macroprudential Policies
The financial crisis, recession, and slow recovery have emphasized the interactions between financial markets and the real economy.
September 30, 2013
September 9, 2013
Preparing for Takeoff? Professional Forecasters and the June 2013 FOMC Meeting
Following the June 18-19 Federal Open Market
Committee (FOMC) meeting different measures of short-term interest rates
increased notably.
June 24, 2013
Crisis Chronicles: 300 Years of Financial Crises (1620–1920)
James Narron and David Skeie As momentous as financial crises have been in the past century, we sometimes forget that major financial crises have occurred for centuries—and often. This new series chronicles mostly forgotten financial crises over the 300 years—from 1620 to 1920—just prior to the Great Depression. Today, we journey back to the 1620s […]
Posted at 7:00 am in Crisis, Economic History, Exchange Rates, Monetary Policy | Permalink | Comments (5)
April 22, 2013
Japanese Inflation Expectations, Revisited
An important measure of success for monetary policy is a central bank’s ability to anchor inflation expectations; inflation expectations influence actual inflation and, hence, the achievement of a given inflation goal.
February 25, 2013
The Macroeconomic Effects of Forward Guidance
In this post, we quantify the macroeconomic effects of central bank announcements about future federal funds rates, or forward guidance.
Posted at 7:00 am in DSGE, Expectations, Fed Funds, Forecasting, Inflation, Monetary Policy | Permalink | Comments (3)
January 7, 2013
Making a Statement: How Did Professional Forecasters React to the August 2011 FOMC Statement?
The Federal Open Market Committee (FOMC) statement released on August 9, 2011, was the first to incorporate language on “forward guidance” with an explicit date tied to the Committee’s expected path of monetary policy.
December 3, 2012
Why (or Why Not) Keep Paying Interest on Excess Reserves?
In the fall of 2008, the Fed added new policy tools to its portfolio of techniques for implementing monetary policy.
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