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Journal Article
The effectiveness of unconventional monetary policy: the term auction facility
This paper investigates the effectiveness of one of the Federal Reserve?s unconventional monetary policy tools, the term auction facility (TAF). At issue is whether the TAF reduced the spread between the London interbank offered rate (LIBOR) rates and equivalent-term Treasury rates by reducing the liquidity premium embedded in LIBOR rates. This paper suggests that rather than reducing the liquidity premium in LIBOR rates, the announcement of the TAF increased the risk premium in financial and other bond rates because market participants interpreted the announcement by the Fed and other ...
Journal Article
The funds rate target and interest rates
Journal Article
The federal debt: too little revenue or too much spending
The rise in the national debt... is entirely a consequence of the federal government?s increase of expenditures without an offsetting increase in revenues.
Journal Article
A proposal for improving forward guidance
Our approach offers several advantages over LSAPs as a financial mechanism to enhance forward guidance.
Journal Article
Tax rates and revenue since the 1970s
Before 2000, the tax burden shifted from the lowest 80% of earners to the highest 20%; since 2000, the burden has shrunk for all groups, but more so for the highest earners.
Journal Article
The case for \\"inflation first\\" monetary policy
Policymakers should not think of price stability and economic stability as competing objectives but as complements - the best way to achieve the latter is to be firmly committed to achieving the former.
Journal Article
The FOMC’s interest rate policy: how long is the long run?
The only outcome consistent with the Fisher equation holding and the FOMC?s zero interest rate policy is that the ?long run? is considerably longer than 4.5 years.
Journal Article
Solving the 1980s' velocity puzzle: a progress report