Working Paper
Monetary policy and natural disasters in a DSGE model: how should the Fed have responded to Hurricane Katrina?
Pakko, Michael R.; Keen, Benjamin D. (2007)
In the immediate aftermath of Hurricane Katrina, speculation arose that the Federal Reserve might respond by easing monetary policy. This paper uses a dynamic stochastic general equilibrium (DSGE) model to investigate the appropriate monetary policy response to a natural disaster. We show that the standard Taylor (1993) rule response in models with and without nominal rigidities is to increase the nominal interest rate. That finding is unchanged when we consider the optimal policy response to a disaster. A nominal interest rate increase following a disaster mitigates both temporary inflation ...
Working Papers , Paper 2007-025

Journal Article
Atlanta Fed ready for 2007 hurricane season
anonymous (2007)
With the arrival of the 2007 hurricane season, the Atlanta Fed has issued guidance to financial institutions regarding steps they can take to prepare for a weather-related crisis. A podcast discussing hurricane preparedness accompanies this story.
Financial Update , Volume 20 , Issue 2