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Monetary policy: why money matters, and interest rates don’t

Thornton, Daniel L. - Federal Reserve Bank of St. Louis - 2012

rate. Money’s role in monetary policy has been tertiary, at best. Indeed, several influential economists have suggested … that money is irrelevant for monetary policy. They suggest that central banks can control inflation by (i) controlling a … rate in order to exert greater control over longer-term rates. I offer an alternative perspective: namely, that money is …

Persistent link: https://www.econbiz.de/10010558739

The Federal Reserve’s response to the financial crisis: what it did and what it should have done

Thornton, Daniel L. - Federal Reserve Bank of St. Louis - 2012

This paper analyzes the Federal Reserve’s major policy actions in response to the financial crisis. The analysis is divided into the pre-Lehman and post-Lehman monetary policies. Specifically, I describe the pre- and post-Lehman monetary policy actions that I believe were appropriate and those...

Persistent link: https://www.econbiz.de/10010592585

How effective is central bank forward guidance?

Kool, Clemens J.M.; Thornton, Daniel L. - Federal Reserve Bank of St. Louis - 2012

This paper investigates the effectiveness of forward guidance for the central banks of four countries: New Zealand, Norway, Sweden, and the United States. We test whether forward guidance improved market participants’ ability to forecast future short-term and long-term rates. We find that...

Persistent link: https://www.econbiz.de/10010600550