We propose and estimate several discrete choice models of monetary policy decision-making that feature time-varying inertia. The models permit us to account for three stylized facts characterizing monetary policymaking in the United States: (1) target interest rates are gradually adjusted in...

Sweden lapsed into a severe recession in 2008 but, unlike other countries, had a rapid and robust recovery. Because of its unique recession experience, it provides a revealing case for investigating monetary policy responses to macroeconomic fluctuations. We estimate Taylor rules for the...

This paper examines a previously overlooked episode in the history of the Federal Reserve involving the relationship between expectations at the outset of WWII regarding the possibility of German victory in Europe and its economic implications for the USA and Western Hemisphere. And this, as...