Friedman, Joseph; Shachmurove, Yochanan - In: Economic Modelling 46 (2015) C, pp. 407-411
This paper examines how commercial banks reacted to the changes in monetary tools in mid-1994, when The Federal Reserve Bank altered its policy by implicitly targeting the Federal Funds Rate (FFR). Prior to 1994, the FFR had a lagged effect on the prime rate that charged commercial banks their...