The Federal Reserve switched from using a corridor operating system to using a floor operating system in late 2008. By design, a floor system eliminates the opportunity cost to a bank of holding reserves, allowing a central bank to use its balance sheet as an independent tool of monetary policy....

Is the United States best served by a single currency? This question is explored in this paper by looking at the regional effects of U.S. monetary policy shocks through the perspective of the Optimal Currency Area framework. Using monthly state-level data for the period 1983:1 to 2008:3, this...

Front Cover -- Praise -- Title Page -- Copyright -- Contents -- About Allan H. Meltzer -- Introduction -- Chapter 1: Making the Rules and Breaking the Mold: Allan Meltzer, 1928-2017 -- Chapter 2: Allan Meltzer and the History of the Federal Reserve -- Chapter 3: Allan Meltzer: How He...

The Federal Reserve’s transition to a flexible average inflation targeting (FAIT) framework in 2020 has come under intense scrutiny, given its failure to prevent the inflation surge of 2021 and 2022. These developments are the result of both a public misunderstanding about how FAIT works and...