Journal Article
The Euro
Stevens, Edward J. (1999-01)
In January 1999, the new European Central Bank began manufacturing a new money-the euro-and took over the operations of 11 nations' monetary systems. This Commentary outlines the ECB's institutions and operations, exploring some of the political economy issues that face the new central banking arrangement.
Economic Commentary , Issue Jan

Journal Article
Beyond zero: transparency in the Bank of Japan’s monetary policy
Stevens, Edward J. (2001-03)
Japan?s economy has problems that, undoubtedly, are more complex than monetary policy might be expected to solve. But other kinds of policy actions stand a better chance of success when monetary policy is transparent. Transparency means that market participants? anticipations of central bank actions are congruent with those of policymakers themselves. The Bank of Japan has made repeated efforts toward greater transparency since achieving independence in 1998.
Economic Commentary , Issue Mar

Journal Article
Is there a message in the yield curve?
Stevens, Edward J. (1989-03)
An examination of the indicator value of the yield curve, concluding that its message is no more distinct than those received from other intermediate indicators.
Economic Commentary , Issue Mar

Journal Article
Electronic money and the future of central banks
Stevens, Edward J. (2002-03)
Computers and telecommunications devices may replace paper currency and checks?some day. Indeed, electronic methods of transferring money have become widely used. Recently, however, discussion of ?electronic money? has taken a new turn, zeroing in on the extent to which holding new forms of electronic money eventually could make central banks obsolete, rendering them powerless to control inflation. This Commentary updates the old story of electronic funds transfers before introducing the new story of electronic money holdings, which may be a metaphor for a larger question about the future of ...
Economic Commentary , Issue Mar

Journal Article
Auctioning treasury securities
Dumitru, Diana; Stevens, Edward J. (1992-06)
A proposal of two suggested changes in the current sealed-bid, multiple-price auction process for selling U.S. Treasury securities, each of which might eliminate incentives and opportunities for market manipulation and thereby reduce the need to police arbitrary auction rules.
Economic Commentary , Issue Jun

Journal Article
Replacing reserve requirements
Stevens, Edward J. (1993-12)
An examination of the fading significance of the Federal Reserve System's reserve requirements and the recent flowering of required clearing balances, a rapidly growing feature of Reserve Bank operations.
Economic Commentary , Issue Dec

Journal Article
The new discount window
Stevens, Edward J. (2003-05)
New regulations will change the way credit is rationed at the Federal Reserve's discount window. The Reserve Banks used to charge a below-market discount rate and rely on loan officers to restrict access to loans. Under the new system, the discount rate normally will be significantly higher than market rates, but loans will be available to any sound institution (which means most) at its discretion. This new arrangement eliminates any perception of a subsidy at the discount window. It also should prevent the actual fed funds rate from exceeding the discount rate so long as depository ...
Economic Commentary , Issue May

Journal Article
Evolution in banking supervision
Stevens, Edward J. (2000-03)
Banking supervision must keep pace with technical innovations in the banking industry. The international Basel Committee on Banking Supervision currently is reviewing public comments on its proposed new method for judging whether a bank maintains enough capital to absorb unexpected losses. This Economic Commentary explains how existing standards became obsolete and describes the new plan.
Economic Commentary , Issue Mar

Journal Article
The dynamics of federal debt
Carlson, John B.; Stevens, Edward J. (1985-07)
An examination of the federal deficit and of the possible effects of persistently high levels of federal debt on real interest rates, private investment, and the economy's real growth.
Economic Commentary , Issue Jul

Journal Article
Federal funds rate volatility
Dumitru, Diana; Stevens, Edward J. (1991-08)
An examination of the role that monetary policy easings and reduced reserve requirements played in the increased federal funds volatility of late 1990 and early 1991.
Economic Commentary , Issue Aug