TITLE

Understanding Monetary Policy Implementation

AUTHOR(S)
Ennis, Huberto M.; Keister, Todd
PUB. DATE
June 2008
SOURCE
Economic Quarterly (10697225);Summer2008, Vol. 94 Issue 3, p235
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article focuses on the issue concerning the monetary policy implementation in the U.S. It states that the Federal Reserve Board aims to adjust the total supply of reserve balances so that it equals demand at exactly the target rate of interest. It says that the critical issue in the implementation process is the sensitivity of the market interest rate to unanticipated changes in supply and demand. It adds that if small estimation errors lead to large swings in the interest rate, a central bank will find it difficult to effectively implement monetary policy to consistently hit the target rate.
ACCESSION #
35893962

 

Related Articles

  • Asia Rates: Rising At Their Own Pace.  // Emerging Markets Monitor;12/20/2004, Vol. 10 Issue 35, p5 

    States that Asian central banks are unlikely to automatically follow the U.S. Federal Reserve which raised rates in December 2004. Number of times when the U.S. has increased its interest rates in the same year; Economic conditions in Asia as of December 20, 2004; Conflicting factors that...

  • EDWIN WALTER KEMMERER AND THE ORIGINS OF THE FED. BETANCOURT, REBECA GOMEZ // Journal of the History of Economic Thought (Cambridge University;Dec2010, Vol. 32 Issue 4, p445 

    In this article we analyze Edwin Walter Kemmerer's contribution to the creation of the Federal Reserve System. Firstly, we contrast Kemmerer's role in the transition from the Aldrich banking reform plan to the Glass—Owen plan with those of A. Piatt Andrew (who was Aldrich's main advisor),...

  • What Did the Fed Do When Inflation Died? GIOVANNONI, OLIVIER // International Journal of Political Economy;Summer2008, Vol. 37 Issue 2, p49 

    This article examines the purpose and actions of the United States Federal Reserve, the mechanism for implementation of monetary policy. The Reserve's mandate is to act towards balanced growth and full employment yet it often is more preoccupied with inflation. The pros and cons of the long-term...

  • Inflation bedevils liquidity. James, David // BRW;5/1/2008, Vol. 30 Issue 17, p12 

    The article offers some insights into the inflation control strategies in Europe and the U.S. citing the role of central banks of these developed economies. The U.S. Federal Reserve has reduced rates by three percent in September while the European Central Bank rate remained unchanged in the...

  • When up is down. van Wyngen, Gerry // BRW;7/8/2004, Vol. 26 Issue 26, p36 

    Focuses on the decision of the U.S. Federal Reserve Bank to increase its overnight interest rates in June 2004. Implications on the interest rates in Australia; Effect of the interest rate increase on the performance of major economies; Impact of the rates on Australian stock prices.

  • The Noisy Debate. BERRY, JOHN M. // International Economy;Fall 2014, Vol. 28 Issue 4, p36 

    The article focuses on the public debate among some U.S. Federal Reserve officials to raise interest rates to keep inflation from jumping past the central bank's 2% target in October 2014. It is noted that an aggressive path for rates that is not likely to be justified by developments in either...

  • Statistical Supplement to the Federal Reserve BULLETIN.  // Statistical Supplement to the Federal Reserve Bulletin;Jun2006, Vol. 3 Issue 6, p1 

    Presents several statistics and financial data related to the U.S. Federal Reserve. Reserves and money stock measures; Federal Reserve Bank interest rates; Aggregate reserves of depository institutions and monetary base; Funds raised in U.S. credit markets.

  • Major indicators to be viewed closely. Showalter, Monica // Bond Buyer;03/14/2000, Vol. 331 Issue 30848, p2 

    Reports that the United States Federal Reserve Board will scrutinize major economic indicators as it approaches its March 21, 2000 D-Day for interest rates. Concerns about the elevated core readings of inflation; Indications of a resurgence in spending activity.

  • Fed Official: Window 'Stigma' Remains. Sloan, Steven // American Banker;11/29/2007, Vol. 172 Issue 229, p18 

    The author reports on concerns regarding the impact which the stigma associated with borrowing from the U.S. Federal Reserve Board's discount window has on interest rates. According to the article, the window's usefulness may be limited due to investors' opinions regarding the window. Opinions...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics