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Conference Paper
Narrow money, broad money, and the transmission of monetary policy
Journal Article
Foreign exchange operations and the Federal Reserve
Conference Paper
Interest rate policy and the inflation scare problem: 1979-1992
Journal Article
Limited commitment and central bank lending
Journal Article
Automation at the Fed
To improve service and reduce costs, the 12 Federal Reserve Banks are consolidating their mainframe computer operations under Federal Reserve Automation Services, which operates mainframe computers at three sites.
Conference Paper
Overcoming the zero bound on interest rate policy
The paper proposes three options for overcoming the zero bound on interest rate policy: a carry tax on money, open market operations in long bonds, and monetary transfers. A variable carry tax on electronic bank reserves could enable a central bank to target negative nominal interest rates. A carry tax could be imposed on currency to create more leeway to make interest rates negative. Quantitative policy--monetary transfers and open market purchases of long bonds--could stimulate the economy by creating liquidity broadly defined. A central bank needs more fiscal support than usual from the ...
Working Paper
Information-aggregation bias
Aggregation in the presence of data processing lags distorts the information content of data, violating orthogonality restrictions that hold at the individual level. Though the phenomenon is general, it is illustrated here for the life cycle-permanent model. Cross-section and pooled-panel data induce information-aggregation bias akin to that in aggregate time series. Calculations show that information-aggregation can seriously bias tests of the life cycle model on aggregate time series, cross-section, and pooled-panel data.
Working Paper
An alternative method of estimating the Cagan money demand function in hyperinflation under rational expectations
This paper contains a description and implementation of a new strategy for estimating the Cagan money demand function under rational expectations.
Working Paper
Limited commitment and central bank lending
Central bank or International Monetary Fund lending should be regarded as a line of credit, analogous to private line-of-credit products. Contractual provisions in private line-of-credit arrangements are designed to control managerial moral hazard and provide a means for profit-maximizing lenders to credibly commit to withdraw credit and induce closure when appropriate. The contractual mechanisms utilized by private line-of-credit providers are not effective for a central bank whose primary mission?to maintain financial system stability?can override its obligation to protect public funds and ...