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Conference Paper
Monetary integration in East Asia
Working Paper
International Aspects of Central Banking : Diplomacy and Coordination
In this paper, we discuss the evolution of central bank interactions since the early 1970s following the breakdown of the managed exchange-rate system that was negotiated at Bretton Woods. We review the most important forums or organizations through which central banks have engaged in diplomacy. We then discuss the mobilization of coordination through diplomacy using three examples over the past 30 years: the Plaza Accord in 1985 negotiated by the G-5; the response to the Asian financial crisis in 1997-98, led by the International Monetary Fund (IMF) with heavy participation from G-7 finance ...
Working Paper
Monetary Policy 101: A Primer on the Fed's Changing Approach to Policy Implementation
The Federal Reserve conducts monetary policy in order to achieve its statutory mandate of maximum employment, stable prices, and moderate long-term interest rates as prescribed by the Congress and laid out in the Federal Reserve Act. For many years prior to the financial crisis, the FOMC set a target for the federal funds rate and achieved that target through purchases and sales of securities in the open market. In the aftermath of the financial crisis, with a superabundant level of reserve balances in the banking system having been created as a result of the Federal Reserve's large scale ...
Discussion Paper
What Happened in Money Markets after the Fed's December Rate Increase?
At its December 2015 meeting, the Fed's policymaking committee, the Federal Open Market Committee (FOMC), announced an increase in the target range for the federal funds rate of 25 basis points, the first increase in the policy rate since June 2006.
Discussion Paper
The Federal Reserve's New Approach to Raising Interest Rates
At its December 2015 meeting, the Federal Open Market Committee (FOMC)--the Federal Reserve's monetary policy committee--raised its target range for the federal funds rate by 25 basis points, marking the end of an extraordinary seven-year period during which the federal funds target range was held near zero to support the recovery of the U.S. economy from the worst financial crisis and recession since the Great Depression.
Discussion Paper
The Effects of FOMC Communications before Policy Tightening in 1994 and 2004
The ways in which the Federal Open Market Committee (FOMC or "Committee") communicates its views on economic and financial conditions, the economic outlook, and its policy intentions have evolved over time.
Discussion Paper
Hanging on Every Word : Semantic Analysis of the FOMC's Postmeeting Statement
The Federal Open Market Committee's (FOMC or "Committee") postmeeting statements constitute one of the key vehicles through which the Committee communicates its assessment of the economy, its policy actions, and its thinking about future policy.
Discussion Paper
The FOMC Meeting Minutes: An Assessment of Counting Words and the Diversity of Views
The Federal Reserve's communications with the public have evolved substantially since the early 1990s and today include: policy statements released shortly after the conclusion of monetary policy meetings; minutes of those meetings issued three weeks later; quarterly economic forecasts from the members of the Federal Reserve Board of Governors and the presidents of the Federal Reserve Banks; the Chair's press conferences four times per year; a semi-annual Monetary Policy Report that is submitted to the Congress and released to the public, along with the Chair's testimony on that report; and ...
Discussion Paper
Changes in Women's Representation in Economics: New Data from the AEA Papers and Proceedings
The shortage of women and historically underrepresented racial and ethnic groups in the economics profession has received considerable public attention in the past several years. The American Economic Association (AEA), the professional organization for economists, has been taking steps to address criticism that the economics discipline is unwelcoming to women and underrepresented minorities.
Discussion Paper
Using Generative AI Models to Understand FOMC Monetary Policy Discussions
In an era increasingly shaped by artificial intelligence (AI), the public’s understanding of economic policy may be filtered through the lens of generative AI models (also called large language models or LLMs). Generative AI models offer the promise of quickly ingesting and interpreting large amounts of textual information.