Conference Paper
What explains the stock market's reaction to Federal Reserve policy?
Bernanke, Ben S.; Kuttner, Kenneth N. (2003-03)
This paper analyzes the impact of unanticipated changes in the Federal funds target on equity prices, with the aim of both estimating the size of the typical reaction, and understanding the reasons for the market's response. On average over the May 1989 to December 2001 sample, a "typical" unanticipated 25 basis point rate cut has been associated with a 1.3 percent increase in the S&P 500 composite index. The estimated response varies considerably across industries, with the greatest sensitivity observed in cyclical industries like construction, and the smallest in mining and utilities. ...
Proceedings , Issue Mar

Working Paper
What explains the stock market's reaction to Federal Reserve policy?
Bernanke, Ben S.; Kuttner, Kenneth N. (2004)
This paper analyzes the impact of changes in monetary policy on equity prices, with the objectives both of measuring the average reaction of the stock market and also of understanding the economic sources of that reaction. We find that, on average, a hypothetical unanticipated 25-basis-point cut in the federal funds rate target is associated with about a one percent increase in broad stock indexes. Adapting a methodology due to Campbell (1991) and Campbell and Ammer (1993), we find that the effects of unanticipated monetary policy actions on expected excess returns account for the largest ...
Finance and Economics Discussion Series , Paper 2004-16

Conference Paper
Credit conditions and external finance: interpreting the behavior of financial flows and interest rate spreads
Kuttner, Kenneth N. (1993)
Proceedings , Paper 1, pt. 1

Journal Article
Does inflation reduce productivity?
Sbordone, Argia M.; Kuttner, Kenneth N. (1994-11)
Economic Perspectives , Volume 18 , Issue Nov

Journal Article
Inflation and the growth rate of money
Kuttner, Kenneth N. (1990-01)
Economic Perspectives , Volume 14 , Issue Jan , Pages 2-11

Journal Article
Tracking Midwest manufacturing and productivity growth
Schnorbus, Robert H.; Israilevich, Philip R.; Kuttner, Kenneth N. (1993-09)
Economic Perspectives , Volume 17 , Issue Sep

Journal Article
Monetary policy with uncertain estimates of potential output
Kuttner, Kenneth N. (1992-01)
Economic Perspectives , Volume 16 , Issue Jan , Pages 2-15

Working Paper
The Fed funds futures rate as a predictor of Federal Reserve policy
Krueger, Joel; Kuttner, Kenneth N. (1995)
Working Paper Series, Macroeconomic Issues , Paper 95-4

Working Paper
Indicator properties of the paper-bill spread: lessons from recent experience
Kuttner, Kenneth N.; Friedman, Benjamin M. (1994)
Working Paper Series, Macroeconomic Issues , Paper 94-24

Working Paper
Macroeconomic effects of employment reallocation
Campbell, Jeffrey R.; Kuttner, Kenneth N. (1996)
Major shifts in employment between industries and between firms within industries usually accompany recessions. Although this observation suggests that exogenous changes in the optimal allocation of labor are an important source of aggregate employment fluctuations, the macroeconomic significance of such shocks has remained unknown. This paper empirically assesses the role of reallocation shocks for cyclical employment fluctuations, and investigates the relationship between inter- and intrasectoral employment flows. In an analysis of total employment and the share employed in manufacturing, ...
Working Paper Series, Macroeconomic Issues , Paper WP-96-11