Adapting, Evolving, Learning
The Federal Reserve is an adapting, evolving, and learning organization. In the Federal Reserve Bank of Cleveland's 2012 Annual Report, we take a close look at how it has changed since its creation 100 years ago. Our essay describes some of the seminal episodes that have influenced the Federal Reserve as we know it today. Times have changed, economic theories have developed, and the Federal Reserve has adapted to meet new demands. In fact, over the course of its 100 years, the Federal Reserve has proved not only a willingness to change, but also an appetite for embracing and initiating change ...
Theory ahead of rhetoric: measurement and the “New Economy”
The annual report essay discusses the measurement system used to track U.S. economic activity, and why it is not yet up to the task of effectively measuring aspects of economic activity that contribute the most to long-term economic growth. For historical reasons, our measuring system has concentrated on expenditure and output; going forward, though, it will need to gauge the true economic values of land, labor, and capital more accurately. Contemporary theories about the business cycle and economic growth indicate that conventional methods of measuring these factors fall short of what we ...
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.
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.
Can economics help save our schools?
Education and the flexibility to adapt to change are the most important factors in stimulating innovation and economic growth. Educated societies possess people who have the skills that enable them to induce change and then to successfully adapt.
Price stability: why we seek it and how best to achieve it
Federal Reserve Bank of Cleveland President Sandra Pianalto explains why price stability is essential for maximum employment and how the adoption of a numerical target for inflation may improve the central bank?s ability to achieve both objectives. Find the essay, along with Frequently Asked Questions about inflation.
Understanding the persistence of poverty
Millions of U.S. citizens continue to live in poverty within one of the wealthiest and most productive nations in the world. The Federal Reserve Bank of Cleveland's 2006 Annual Report reviews some of the reasons for the persistence of poverty in America and suggests that better education and training may be the best defense against poverty.
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.
Theory ahead of rhetoric: economic policy for a \\"new economy\\"
The most important theoretical developments in economics of the past 20 years undermine the notion that substantial benefits are to be had from policies aimed at smoothing what has come to be known as the ?business cycle.? These fine-tuning policies, moreover, may prove costly if their price is higher, unpredictable inflation. Although policymakers may have conquered the fine-tuning impulse, they have perpetuated the language that accompanies it. That is, the language of monetary policy has failed to keep pace with theory and practice. In a world where expectations matter, the language of ...
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.