Like the bank notes that circulated in this country from 1863 to 1913, stored-value cards substitute the liabilities of private banks for government and central-bank liabilities. This shift may have important implications for the federal budget, the money supply, and monetary policy.

A discussion of inflation experience over the last 20 years, including Federal Reserve System monetary policy and the use of monetary targets as tools for achieving the ultimate goal of zero inflation.

An argument that the Federal Reserve could improve the performance of the economy by committing to the long-term goal of price stability and by announcing a time frame within which to achieve it. The author explains his support of House Joint Resolution 409, which would mandate making price...

Monetary policy rules help central banks exercise the discipline necessary to achieve their long-term goals. The type of rule many banks are turning to these days is inflation targeting, which has several advantages. But because banks base their actions on forecasts of future inflation,...

Recessions are associated with both rising oil prices and increases in the federal funds rate. Are recessions caused by the spikes in oil prices or by the sharp tightening of monetary policy? The authors discuss how to disentangle these two effects.

A discussion of recessions, caused by inflationary monetary policies as well as nonmonetary surprises, and a prescription for attaining maximum sustainable economic growth.

The economy has been expanding for the past few years, but concerns are growing over the pressures placed on it by fiscal deficits, current account imbalances, and energy shocks. Sandra Pianalto, president and CEO of the Federal Reserve Bank of Cleveland, explains why she thinks the Federal...

A review of the connection between labor resource utilization and the growth/unemployment correlation summarized by Okun's law, showing that the instability of that relationship, particularly over short time horizons, has important implications for monetary policy.

A description of the Federal Reserve monetary policy framework, with a suggestion that a multiyear nominal income target be viewed as a practical extension of current policy procedures.

An examination of the apparent breakdown in the relationship between M1 and economic activity, with a discussion of the historical perspective of the breakdown of velocity in the 1980s, and of the monetarist position on recent experience.