Since 1984, the FOMC has often issued directives for monetary policy that indicate a bias toward easing or tightening. This paper investigates the information content of these asymmetric directives for the likelihood of inter-meeting changes in policy during the Greenspan chairmanship. If policy...

This paper studies the credibility and transparency of monetary policy. We characterize each FOMC meeting as a decision to ease, maintain, or tighten monetary policy and model decisions with ordered probit reaction functions. Policy is credible if the estimated models are significant functions...