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Interest rate smoothing and price level trend-stationarity

Goodfriend, Marvin - Federal Reserve Bank of Richmond - 1986

Persistent link: https://www.econbiz.de/10005512253

The information content of discount rate announcements and their effect on market interest rates

Cook, Timothy; Hahn, Thomas - Federal Reserve Bank of Richmond - 1986

This paper presents evidence that throughout the 1973-85 period the Federal Reserve systematically used certain types of discount rate announcements to signal changes in its policy instrument, the Federal funds rate. Market participants understood the signals contained in discount rate...

Persistent link: https://www.econbiz.de/10004993889

Behavior of the real rate of interest over the business cycle

Dotsey, Michael; Scholl, Brian - Federal Reserve Bank of Richmond - 2000

series. These series are obtained by using a number of different methodologies for estimating expected inflation, using … several different price series, and looking over different time periods. The evidence suggests that over the entire sample …. These results, however, are sensitive to the price series used. That is, we find evidence of specification uncertainty. We …

Persistent link: https://www.econbiz.de/10004993899

On the implementation of Markov-Perfect interest rate and money supply rules : global and local uniqueness

Dotsey, Michael; Hornstein, Andreas - Federal Reserve Bank of Richmond - 2011

Currently there is a growing literature exploring the features of optimal monetary policy in New Keynesian models under both commitment and discretion. This literature usually solves for the optimal allocations that are consistent with a rational expectations market equiibrium, but it does not...

Persistent link: https://www.econbiz.de/10004993912

Fisher, Thorton and the analysis of the inflation premium

Beranek, William; Humphrey, Thomas M.; Richard H. … - Federal Reserve Bank of Richmond - 1984

Virtually all references to the Fisher Effect assume that its appearance in nominal interest rates is a simultaneous result of borrower and lender effects. However, Irving Fisher, and Henry Thornton before him emphasized the activist role on the borrower (demand) side of the loan market. Their...

Persistent link: https://www.econbiz.de/10004993921

What is the real story for interest rate volatility?

Hornstein, Andreas; Uhlig, Harald - Federal Reserve Bank of Richmond - 1999

What is the source of interest rate volatility? Why do low interest rates precede business cycle booms? Most observers tend to assume that monetary policy is largely responsible for it. Indeed, a standard real business cycle model delivers rather small fluctuations in real interest rates. Here,...

Persistent link: https://www.econbiz.de/10004993935

Informational implications of interest rate rules

Dotsey, Michael; King, Robert G. - Federal Reserve Bank of Richmond - 1984

Returning to a topic first systematically treated by Poole (1970) in a textbook Keynesian model, this paper compares interest rate and money supply rules. Our analysis, by contrast, is conducted within a rational expectations macro model that incorporates flexible prices and informational...

Persistent link: https://www.econbiz.de/10004993937

Financial stability, deflation, and monetary policy

Goodfriend, Marvin - Federal Reserve Bank of Richmond - 2001

The paper explores the relationship between financial stability, deflation, and monetary policy. A discussion of narrow liquidity, broad liquidity, market liquidity, and financial distress provides the foundation for the analysis. There are two preliminary conclusions. Equity prices are a...

Persistent link: https://www.econbiz.de/10004993948

Interest rates and the conduct of monetary policy

Goodfriend, Marvin - Federal Reserve Bank of Richmond - 1990

The paper describes key aspects of actual Federal Reserve interest rate targeting procedures and addresses a number of issues in light of these stylized facts. It reviews the connection between rate smoothing and price level trend-stationarity. It critiques interest rate targeting as inflation...

Persistent link: https://www.econbiz.de/10004993974

Real implications of the zero bound on nominal interest rates

Wolman, Alexander L. - Federal Reserve Bank of Richmond - 2003

If monetary policy succeeds in keeping average inflation very low, nominal interest rates may occasionally be constrained by the zero lower bound. The degree to which this constraint has real implications depends on the monetary policy feedback rule and the structure of price-setting. Policy...

Persistent link: https://www.econbiz.de/10004993999