Federal Reserve policy / Karl R. Bopp [and three others].

Format:

Book

Government document

Author/Creator:

Bopp, Karl R. (Karl Richard), 1906-1979, author.

Contributor:

Board of Governors of the Federal Reserve System (U.S.), issuing body.

Series:

Postwar economic studies ; no. 8.

Postwar economic studies ; no. 8

Language:

English

Subjects (All):

Federal Reserve banks.

Credit--United States.

Credit.

Currency question--United States.

Currency question.

Monetary policy--United States.

Monetary policy.

federal reserve banks.

United States.

Physical Description:

1 online resource (iv, 119 pages) : illustrations.

Place of Publication:

Washington : Board of Governors of the Federal Reserve System, 1947.

Summary:

Romer and Romer (1989,1990,1992) identify dates where the Federal Reserve appears to have shifted its policy towards reducing the rate of inflation. This paper examines the economic context that drives this decision. It finds that the Fed appears to weigh the outlook for unemployment as well as that for inflation in making its decision about disinflation. Previous work has not examined the course of inflation over the disinflations. This paper finds responses of the inflation rate to the "disinflations" only in a specification where the effects of the policy are presumed to be permanent Moreover, the Volcker disinflation is found to be the only "disinflation" to reduce inflation permanently. The disinflation after the 1973 OPEC price increases was effective, but only temporarily. Other disinflations had negligible impacts on the rate of inflation over all horizons. Variables measuring the expected present discounted values of unemployment and inflation are constructed. These variables are used in a discrete-choice model to explain the Fed's decision to disinflate. This model does a fairly good job of explaining the Fed's decisions. Both inflation and unemployment drive the Fed's decision. For some episodes, notably in the 1970's, inflation is the main variable driving the decision. In the 1969 and 1988 episodes, unemployment matters more.

Contents:

Three decades of federal reserve policy / Karl R. Bopp

Impact of the war on the member banks, 1939-1946 / Robert V. Rosa

Selective instruments of national credit policy / Carl E. Parry

Problems of postwar monetary policy / Woodlief Thomas and Ralph A. Young.

Notes:

Title from title screen (viewed on Jan. 29, 2014).

"November 1947."

Publication pre-dates item numbers. No item number has been assigned.

Includes bibliographical references.

Electronic reproduction. [S.l.] : HathiTrust Digital Library, 2010.

Other Format:

Print version: Bopp, Karl R. (Karl Richard), 1906-1979. Federal Reserve policy

OCLC:

573988692

Access Restriction:

Use copy Restrictions unspecified