The Federal Reserve's Framework for Monetary Policy: Recent Changes and New Questions
The Federal Reserve has made substantial changes to its framework for monetary policy in recent years. On balance, the Federal Reserve has moved closer to the "flexible inflation targeting" used, in some form or another, by many foreign central banks. The Federal Reserve's approach, h...
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| Veröffentlicht in: | IMF economic review 2015-04, Vol.63 (1), p.22-70 |
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| creator | ENGLISH, WILLIAM B. LÓPEZ-SALIDO, J. DAVID TETLOW, ROBERT J. |
| description | The Federal Reserve has made substantial changes to its framework for monetary policy in recent years. On balance, the Federal Reserve has moved closer to the "flexible inflation targeting" used, in some form or another, by many foreign central banks. The Federal Reserve's approach, however, includes a balanced approach to its dual objectives and uses a flexible horizon over which policy aims to foster its objectives. The paper uses a small-scale macro model to help illuminate the Federal Reserve's use of forward guidance. It also examines the case for establishing a different policy objective, such as a higher inflation target or a nominal income target. The paper finds that such changes might be beneficial, but also have potentially significant drawbacks. |
| doi_str_mv | 10.1057/imfer.2014.27 |
| format | Article |
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| ispartof | IMF economic review, 2015-04, Vol.63 (1), p.22-70 |
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| language | eng |
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| source | PAIS Index; Jstor Complete Legacy; SpringerLink Journals - AutoHoldings |
| subjects | Analysis Asset acquisitions Capital Markets Central banks Committees Economic aspects Economic crisis Economic expectations Economic inflation Economic models Economic Policy Economics Economics and Finance Employment Federal funding Federal funds rate Federal Reserve monetary policy Forecasts and trends Inflation Inflation (Finance) Inflation rates Interest rates International Economics Macroeconomics Macroeconomics/Monetary Economics//Financial Economics Monetary policy Nominal income Objectives Press conferences Purchasing Studies Taylor rule United States |
| title | The Federal Reserve's Framework for Monetary Policy: Recent Changes and New Questions |
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