Showing 1 - 10 of 10
This paper reports empirical results indicating that there is no compelling evidence in favor of singling outany one variable as "the intermediate target" of monetary policy. Of the variables considered here - including money (M1), credit, a long-term interest rate, and whichever of either...
Persistent link: https://www.econbiz.de/10012477599
The principal criteria for the selection of an intermediate target for monetary policy are (1) that the target be closely related to the nonfinancial objectives of monetary policy, (2) that it contain information about the future movements of those relevant aspects of the nonfinancial economy,...
Persistent link: https://www.econbiz.de/10012478125
The maturity structure of the U.S. government's outstanding debt has undergone large changes over time, at least in part because of shifts in the Treasury's debt management policy. During most of the post World War I1 period, an emphasis on short-term issues rapidly reduced the debt's average...
Persistent link: https://www.econbiz.de/10012478281
The threat to monetary policy from the electronic revolution in banking is the possibility of a decoupling' of the operations of the central bank from markets in which financial claims are created and transacted in ways that, at some operative margin, affect the decisions of households and firms...
Persistent link: https://www.econbiz.de/10012470781
Major changes have taken place in the U.S. economy within the past quarter century. Changes with implications that are at least potentially important for the effect of monetary policy on real economic activity include the elimination of Regulation Q interest ceilings and the development of the...
Persistent link: https://www.econbiz.de/10012475757
The extraordinary increase in reliance on debt by U.S. business in the 1980s has generated widespread concern that overextended borrowers may become unable to meet their obligations and that proliferating defaults could then lead to some kind of rupture of the financial system, with ensuing...
Persistent link: https://www.econbiz.de/10012475771
The notion of targets and instruments is basic to the conceptual framework that economists have used to bring economic analysis to bear on practical issues of how central banks can and/or should conduct monetary policy. This paper surveys the literature of targets and instruments of monetary...
Persistent link: https://www.econbiz.de/10012476396
The collapse in the 1980s of familiar relationships connecting money to either income or prices has thrown into question long-standing presumptions about the appropriate conduct of monetary policy. Once data from the 1980s are included, tests of several kinds -- including simple regression...
Persistent link: https://www.econbiz.de/10012476515
By contrast, forward guidance on the future trajectory of monetary policy has been less successful. Public statements by central banks about their actions and intentions will no doubt continue, but transparency for the sake of transparency is not the same as the deliberate attempt to shape...
Persistent link: https://www.econbiz.de/10012458536
The standard workhorse models of monetary policy now commonly in use, both for teaching macroeconomics to students and for supporting policymaking within many central banks, are incapable of incorporating the most widely accepted accounts of how the 2007-9 financial crisis occurred and incapable...
Persistent link: https://www.econbiz.de/10012459702