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Working Paper
The U. S. monetary policy regime, interest differentials and dollar exchange rate risk premia
It is commonly believed that the Federal Reserve targeted money growth directly and allowed greater variation in interest rates during the October 1979-October 1982 period. Other things the same, this policy regime would be expected to increase the risk premium on the dollar exchange rate relative to a regime that attempted to reduce variations in the interest rate. We find that risk premia apparently did increase during the regime of M1 targeting. This implied that failure to recognize the effects of changes in Fed policy is a source of specification error in exchange rate models.
Working Paper
Selecting an intermediate target variable for monetary policy when the goal is price stability
Conventional investigations of the "best" intermediate target variable for monetary policy have used a single criterion: the best fit between the behavior of an aggregate and that of some goal variable such as nominal spending or the aggregate price level. Ignored in this type of study, however, is the ability of the central bank to control the behavior of the aggregate which has the best fit relative to the goal variable. This paper treats the issue of monetary control explicitly and selects an intermediate target variable on the basis of a joint criterion of monetary control and ...
Working Paper
An admissible monetary aggregate for the United Kingdom
Working Paper
The effects of federal credit programs on farm output