Estimates of Taylor rule equations for Federal Reserve policy over periods before the Greenspan period are misleading. Until 1979 Fed policy changed the real funds rate in response to the output gap, with no response to an inflation target. During the Volcker period the policy rule kept the real...

The "credit view" emphasizes the impact of monetary policy on the amount and conditions of credit supplied by the banking sector as a main transmission channel. A review of the literature shows that the view that banks are in some sense special is widely accepted. However, whether the bank...

Many studies have reported on various empirical tests of the expectations theory of the term structure of interest rates (ET). Although a common perception seems to be that the ET is rejected by the empirical tests, the overall evidence is actually mixed between frequent support and occasional...