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Keywords:Monetary policy 

Journal Article
Monetary policy and the behavior of long-term real interest rates

A time-honored description of the "monetary transmission channel" suggests that the Fed controls the federal funds rate, which affects the rates on longer-term credit market instruments, which affect the expected real (inflation-adjusted) rates on longer-term instruments, which affect real spending on interest-sensitive goods, which affects unemployment and inflation. And yet one key link in the chain, the expected real long-term interest rate, is not observable.> This article explores the link between the behavior of monetary policy and inferences about the behavior of the expected ...
New England Economic Review , Issue Sep , Pages 39-52

Working Paper
Pre-announcement effects, news, and volatility: monetary policy and the stock market

I examine pre-announcement and news effects on the stock market in the context of public disclosure of monetary policy decisions. The results suggest that the stock market tends to be relatively quiet--conditional volatility is abnormally low--on days preceding regularly scheduled policy announcements. Although this calming effect is routinely reported in anecdotal press accounts, it is statistically significant only over the past four to five years, a result that I attribute to changes in the Federal Reserve's disclosure practices in early 1994. The paper also looks at how the actual ...
Finance and Economics Discussion Series , Paper 2000-50

Journal Article
The 1973 national economic plan: slowing the boom

Review , Volume 55 , Issue Mar , Pages 2-9

Conference Paper
Noncooperative monetary policies in interdependent economies: time consistency and reputation

Proceedings

Working Paper
Does monetary policy keep up with the Joneses? Optimal interest-rate smoothing with consumption externalities

Changes in monetary policy are typically implemented gradually, an empirical observation known as interest-rate smoothing. We propose the explanation that time-non-separable preferences may render interest-rate smoothing optimal. We find that when consumers have "catching-up-with-the-Joneses" preferences, optimal monetary policy reacts gradually to shocks to prevent inefficiently fast adjustments in consumption. We also extend our basic model to investigate the effects of capital formation and nominal rigidities on the dynamics of optimal monetary policy. Optimal policy responses continue ...
International Finance Discussion Papers , Paper 812

Conference Paper
Asset price and monetary policy : Japan's experience

Proceedings - Economic Policy Symposium - Jackson Hole

Conference Paper
Commentary : should the European Central Bank and the Federal Reserve be concerned about fiscal policy?

Proceedings - Economic Policy Symposium - Jackson Hole

Conference Paper
Income inequality : issues and policy options : a symposium, Jackson Hole, Wyoming, August 27-29, 1998

Proceedings - Economic Policy Symposium - Jackson Hole

Working Paper
Expectations and economic fluctuations: an analysis using survey data

Using survey-based measures of future U.S. economic activity from the Livingston Survey and the Survey of Professional Forecasters, the authors study how changes in expectations, and their interaction with monetary policy, contribute to fluctuations in macroeconomic aggregates. They find that changes in expected future economic activity are a quantitatively important driver of economic fluctuations: a perception that good times are ahead typically leads to a significant rise in current measures of economic activity and inflation. The authors also find that the short-term interest rate rises ...
Working Papers , Paper 10-6

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