The asymmetric effects of political pressures on U.S. monetary policy

Article Abstract:

A study examined the significance of US political measures in controlling economic state variables, such as inflation and unemployment, and reaction functions were estimated during the tenure of each Federal Reserve Board chairman. A forecasting equation approach was used to estimate reaction functions of economic variables while the SAFER (Signaling from Administration to Federal Reserve) was used to estimate reaction functions of political pressures. The study showed that political pressures do affect tightness on US monetary policy, especially those coming from the executive branch.

Analysis, Unemployment

---

Optimal seigniorage versus interest rate smoothing

Article Abstract:

The optimal seigniorage hypothesis and the interest rate smoothing hypothesis were compared as to their ability to explain the conduct of postwar US monetary policy. The results showed that US data does not support the key implications of optimal seigniorage, but supports the key implications of interest rate smoothing when considering Federal Reserve data under Volcker, Martin and Greenspan.

Models

---

Central Bank Independence and the Output-Inflation tradeoff

Article Abstract:

This study shows that higher central bank independence is associated with both less inflation and more growth in less developed countries, it is only associated with less inflation in industrialized countries and no significant effect on either rate of growth of real income or its variance.

United States, Statistical Data Included, Developing countries, Industrialized countries, Central banks, Industrial nations, Autonomy, Autonomy (Political science)

Similar abstracts:

• Abstracts: External determinants of the Russian Federation's monetary policy. Federal financial assistance to subjects of the Russian Federation and the fiscal behavior of fegional authorities in 1994-2000
• Abstracts: Comment on: multiple-solution indeterminacies in monetary policy analysis. Monetary rules for small, open, emerging economies
• Abstracts: Does foreign exchange intervention signal future monetary policy? When and how much to talk credibility and flexibility in monetary policy with private information
• Abstracts: The time-varying NAIRU and its implications for economic policy. Vector autoregressions
• Abstracts: The prepayment-protection loan rides again. Market trends raise challenges. Loans around the world

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.