This paper examines how commercial banks reacted to the changes in monetary tools in mid-1994, when The Federal Reserve Bank altered its policy by implicitly targeting the Federal Funds Rate (FFR). Prior to 1994, the FFR had a lagged effect on the prime rate that charged commercial banks their...

This paper focuses on the issue of the information asymmetry between <p> the Federal Reserve Bank and commercial forecasters. Previous theoretical and <p> empirical evidence suggests that in the absence of confidential supervisory <p> information, commercial forecasters either under- or over- predict...</p></p></p>

This paper studies the determinants of monetary policy since 1980 to see whether the Fed has truly followed an ad hoc approach, or whether some variables play a more important role in determining monetary policy than others. The results suggest that the Fed consistently responds to the...