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Interest rate smoothing and price level trend-stationarity

Goodfriend, Marvin - Federal Reserve Bank of Richmond - 1987

For industrial countries in the post-war period, the price level and the money stock have displayed little tendency to revert to given growth paths. Indeed, this stylized fact is frequently referred to by monetarist critics of central banks, who point out that periods of temporarily high or low...

Persistent link: https://www.econbiz.de/10004994046

A note on the neutrality of temporary monetary disturbances

Goodfriend, Marvin; King, Robert G. - Federal Reserve Bank of Richmond - 1979

In the classical macroeconomic models constructed by Lucas (1972, 1975) and Barro (1976), monetary aggregates are assumed to be generated by a logarithmic random walk. This specification implies that all monetary growth is (a) unanticipated and (b) permanent.

Persistent link: https://www.econbiz.de/10004994048

Overcoming the zero bound on interest rate policy

Goodfriend, Marvin - Federal Reserve Bank of Richmond - 2000

The paper proposes three options for overcoming the zero bound on interest rate policy: a carry tax on money, open market operations in long bonds, and monetary transfers. A variable carry tax on electronic bank reserves could enable a central bank to target negative nominal interest rates. A...

Persistent link: https://www.econbiz.de/10004994054

The Taylor principle, interest rate smoothing and Fed policy in the 1970s and 1980s

Mehra, Yash P. - Federal Reserve Bank of Richmond - 2002

1994Q4. The inflation rate response coefficient is close to unity over the first sub-period and well above unity over the …

Persistent link: https://www.econbiz.de/10004994057

Does state-dependent pricing imply coordination failure?

Wolman, Alexander L. - Federal Reserve Bank of Richmond - 1999

The analysis in Ball and Romer [1991] suggests that models with fixed costs of changing price may be rife with multiple equilibria; in their static model price adjustment is always characterized by strategic complementarity, a necessary condition for multiplicity. We extend Ball and Romer's...

Persistent link: https://www.econbiz.de/10004994063

Inflation uncertainty and growth in a simple monetary model

Dotsey, Michael; Sarte, Pierre-Daniel - Federal Reserve Bank of Richmond - 1997

This paper analyzes the effects of inflation variability on economic growth in a model where money is introduced via a … cash-in-advance constraint. In this setting, we find that inflation adversely affects long-run growth, even when the cash …-in-advance constraint applies only to consumption. At the same time, we find that inflation and growth are positively related in the short …

Persistent link: https://www.econbiz.de/10004994067

The credibility of the Wall Street Journal in reporting the timing and details of monetary policy events

Cook, Timothy; Hahn, Thomas - Federal Reserve Bank of Richmond - 1989

This paper answers questions raised about our use of the Wall Street Journal in an earlier paper in which we estimated the effect of changes in the federal funds rate target -- the Federal Reserve's policy instrument -- on market interest rates in the 1970s. In that paper we found that changes...

Persistent link: https://www.econbiz.de/10004994071

Some not so unpleasant monetarist arithmetic

Dotsey, Michael - Federal Reserve Bank of Richmond - 1995

This paper analyzes the quantitative significance of Sargent and Wallace's (1981) "Some Unpleasant Monetarist Arithmetic" in a model that is parameterized to correspond with U.S. data. The major result is that the monetarist arithmetic is not overly unpleasant and that the nominal side of the...

Persistent link: https://www.econbiz.de/10004994072

Monetary policy, secrecy, and federal funds rate behavior

Dotsey, Michael - Federal Reserve Bank of Richmond - 1985

The behavior of the Federal Reserve System can be characterized as secretive with respect to its control of monetary aggregates. One common justification for this secrecy is that markets will overreact to information, causing undue variability in interest rates. However, the consequences of...

Persistent link: https://www.econbiz.de/10004994079