Taylor's rule and the Fed: 1970-1997

Article Abstract:

The relationship between economic developments and the Federal Reserve's response to them is studied using a simple model. The focus of the research is on how the Federal Reserve's reaction function has changed over time. In addition, three subsamples delineated by the terms of three Federal Reserve chairmen are taken into account. The results showed that success or failure in controlling inflation was consistent with the estimated reaction functions for each period. Thus, the Taylor-rule framework is useful in the summary of vital elements of monetary policy.

Federal Reserve Banks, Monetary Authorities - Central Bank, Econometrics & Model Building, Models, Economic policy, Econometrics, Inflation (Finance), United States. Federal Reserve Board, Business models, Inflation (Economics)

---

Is there a broad credit channel for monetary policy?

Article Abstract:

The effects of internal and external funds on investments are used as determinants for the existence of a broad credit channel. Data from the manufacturing sector indicates that small firms are more affected by strict monetary policies because of their dependence on internal funds and limited external funds. Large firms, which have more internal and external resources, are not as affected by monetary contractions. The relationship between internal funds and investments relaxes during monetary easing. This proves the existence of a broad credit channel.

Investments, Credit

---

Is there a bank lending channel for monetary policy?

Article Abstract:

The existence of a bank lending channel for monetary policy is studied based on changes in the mix between bank and nonbank debt following changes in monetary policy. Differential responses to monetary policy of the debt mix for both small and large firms are analyzed as well as shifts in nonbank debt. Results show that contrary to previous studies, there is no bank lending channel for monetary policy.

Similar abstracts:

• Abstracts: Geography and the Internet: is the Internet a substitute or a complement for cities?. Persistence and stability in city growth
• Abstracts: Public good provision and the welfare effects of indirect tax harmonisation. Measuring tax efficiency: A tax optimality index
• Abstracts: Battling the bottle. Battling a silent enemy. Searching for answers
• Abstracts: Is teacher inconsistency hindering education? Energy in action
• Abstracts: Toilet cleaning and department chairing: volunteering a public service. Volunteering a public service: an experimental investigation

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