Altered states: a perspective on 75 years of state income growth
According to a study featured in the Federal Reserve Bank of Cleveland's 2005 Annual Report, differences in state income levels can be explained largely by two factors: innovation and workforce skills. The study's findings suggest that increasing a region's knowledge base should be a primary component of economic development strategies.
Putting systemic risk on the radar screen
As the nation ponders its response to the greatest financial crisis in generations, plans for regulatory reform are everywhere. Proposals to break up big financial companies, create a new agency for consumer protection, and lay out additional rules for derivatives, insurance companies, and hedge funds?they?re all on the table.
Breaking the housing crisis cycle
A plan for breaking the housing crisis cycle is emerging from the epicenter of the nation?s foreclosure meltdown. In its just-released annual report, the Federal Reserve Bank of Cleveland is calling for a multi-faceted approach that aims to address the interconnected problems that have led to too many Americans losing their homes and too many neighborhoods falling into disrepair.
Federal Reserve policy promotes growth
A view of the relationship between monetary policy and the economy, reflecting the belief that maintaining price stability does not require high interest rates and less growth.
The Great Depression and Japan's more recent experience convinced some central bankers that deflation is dangerous. This report, however, argues that deflation is an acceptable economic outcome if it is occasional, small in magnitude, and accompanied by strong productivity growth. They analyze the economic impact of deflation and conclude that while the zero, or very low, nominal interest rates that often accompany deflation can cause problems, many of the problems attributed to deflation are not unique to falling prices per se. Some business people mistakenly fear deflation when the real ...
Rhetoric aligned with theory: talking productively about interest rates
If the recession that began in March 2001 has ended, as many believe, it will be hard to oppose the sentiment that the U.S. economy has navigated some fairly treacherous waters with minimal damage. To many, no doubt, the 475 basis point reduction in the federal funds rate engineered by the FOMC will be one of the heroes of the recovery?expansion story. Should we not, then, re-evaluate the position this Bank has taken in the past?that policymakers should keep their eyes on long-term objectives rather than reacting to perceived, short-term gaps between output and its ?potential??
Beyond price stability: a reconsideration of monetary policy in a period of low inflation
Proposals for making price stability the Federal Reserve's primary monetary policy objective still deserve serious consideration and support, but perhaps this objective should be considered in a broader context than has been the case in recent years.
Our payments system: challenges and opportunities. 1997 Annual report of the Federal Reserve Bank of Cleveland.
An essay that considers the rapid transformation of payments systems as well as the challenges and opportunities facing its participants, including the Federal Reserve.
The year of disinflation
A review of 1982 monetary policy decisions and economic conditions, with an analysis of the continuing 1981 recession and the process of disinflation.
Maximum employment: what we know (and don’t know) about the labor market
Developing issues in the labor market are clouding the outlook for both the unemployment rate and the natural rate of unemployment over the next few years. Both rates at their current levels clearly argue for providing an accommodative monetary policy, as long as inflation remains consistent with the Federal Open Market Committee?s price stability objective. ; During the next few years, I expect that our economy will continue to grow, that unemployment will decline, and that inflation will average about 2 percent. Monetary policy will need to be adjusted in response to incoming data that may ...