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Inflation targeting and target instability

Tetlow, Robert J. - Federal Reserve Board (Board of Governors of the … - 2000

Monetary policy is modeled as governed by a known rule, except for a time-varying target rate of inflation. The …-expectations model of the U.S. economy, are used to examine the benefits of reducing the variability in the target rate of inflation. We … greater attention to output stabilization than otherwise. The results provide insights as to why inflation-targeting countries …

Persistent link: https://www.econbiz.de/10005393925

Activist stabilization policy and inflation: the Taylor rule in the 1970s

Orphanides, Athanasios - Federal Reserve Board (Board of Governors of the … - 2000

A number of recent studies have suggested that activist stabilization policy rules responding to inflation and the … output gap can attain simultaneously a low and stable rate of inflation as well as a high degree of economic stability. The …

Persistent link: https://www.econbiz.de/10005393926

Uncertainty, learning, and gradual monetary policy

Sack, Brian - Federal Reserve Board (Board of Governors of the … - 1998

The value of a vast array of financial assets are functions of rates or prices determined in OTC, interbank, or other off-exchange markets. In order to price such derivative assets, underlying rate and price indexes are routinely sampled and estimated. To guard against misreporting, whether...

Persistent link: https://www.econbiz.de/10005393961

Does monetary policy affect stock prices and Treasury yields? An error correction and simultaneous equation approach

Durham, J. Benson - Federal Reserve Board (Board of Governors of the … - 2003

This study pursues two addenda to the practitioner and academic on the effect of monetary policy on asset prices. First, this paper applies cointegration theory, and, second, relaxes the stringent assumption in the literature that changes in 10-year Treasury yields, stock returns, and changes in...

Persistent link: https://www.econbiz.de/10005393989

Federal Reserve transparency and financial market forecasts of short-term interest rates

Swanson, Eric T. - Federal Reserve Board (Board of Governors of the … - 2004

transparency are likely to have played a role: for example, private sector forecasts of GDP and inflation have not experienced …

Persistent link: https://www.econbiz.de/10005394007

Transparency and monetary policy: what does the academic literature tell policymakers?

Carpenter, Seth B. - Federal Reserve Board (Board of Governors of the … - 2004

Transparency in monetary policy has become a popular topic over the past decade. However, the majority of the economic research is theoretical, calling into question its value as a practical guide to monetary policy. This paper surveys the literature to assess what conclusions a central bank can...

Persistent link: https://www.econbiz.de/10005394040

Interest-rate smoothing and optimal monetary policy: a review of recent empirical evidence

Sack, Brian; Wieland, Volker - Federal Reserve Board (Board of Governors of the … - 1999

of central banks whose only objectives are to stabilize output and inflation. We summarize recent research on three …

Persistent link: https://www.econbiz.de/10005394041

Making news: financial market effects of Federal Reserve disclosure practices

Bomfim, Antulio N.; Reinhart, Vincent R. - Federal Reserve Board (Board of Governors of the … - 2000

As recently as early 1994, market participants had to infer the stance of U.S. monetary policy according to the type and size of the open market operations conducted by the Federal Reserve's Trading Desk. Thus, investors were exposed to uncertainty about both the timing and the motivation for...

Persistent link: https://www.econbiz.de/10005394049

Expectation traps in a New Keynesian open economy model

Arseneau, David M. - Federal Reserve Board (Board of Governors of the … - 2004

. One implication of the model is that provided initial inflation expectations are sufficiently anchored the global Friedman …

Persistent link: https://www.econbiz.de/10005394055

The impact of monetary policy on asset prices

Rigobon, Roberto; Sack, Brian - Federal Reserve Board (Board of Governors of the … - 2002

Estimating the response of asset prices to changes in monetary policy is complicated by the endogeneity of policy decisions and the fact that both interest rates and asset prices react to numerous other variables. This paper develops a new estimator that is based on the heteroskedasticity that...

Persistent link: https://www.econbiz.de/10005394057