Interest on reserves and monetary policy

Paper for a conference sponsored by the Federal Reserve Bank of New York entitled Financial Innovation and Monetary TransmissionMonetary policy ; Bank reserves ; Interest rates ; Interest

Money, credit, banking, and payments system policy

This article employs contract theory to analyze the evolution of the payments system. Insights gained are used subsequently to evaluate three prominent public payments system policies: monetary policy, central bank lending, and deposit insurance.Payment systems

Eurodollars

Euro-dollar market ; Money market

Exchange rate policy and the dual role of exchange rate movements in international adjustment

An abstract for this article is not availableForeign exchange market ; Foreign exchange rates

The monetary policy debate since October 1979: lessons for theory and practice

Monetary theory and policy have been revolutionized in the two decades since October 1979, when the Federal Reserve under the leadership of Paul Volcker moved to stabilize inflation and bring it down. On the side of practice, the decisive factor was the demonstration that monetary policy could acquire and maintain credibility for low inflation, and improve the stability of both inflation and output relative to potential. On the theory side, the introduction of rational expectations was decisive because it enabled models of monetary policy to incorporate forward-looking elements of aggregate demand and price-setting, long known to be critically important for policy analysis, so as to understand how monetary policy achieved the favorable results found in practice.Monetary policy ; Monetary theory ; Inflation (Finance) ; Volcker, Paul A.

Eurodollars

An abstract for this article is not available.Euro-dollar market

How the World Achieved Consensus on Monetary Policy

This article tells how the world achieved a working consensus on the core principles of monetary policy. The story begins with the muddled state of affairs in the late 1970s. It then asks: How did Federal Reserve policy produce an understanding of the practical principles of monetary policy? How did formal institutional support abroad for targeting low inflation follow from an international acceptance of these ideas? And how did a consensus theoretical model develop in academia? The article tells how the modern theoretical consensus known as the New Neoclassical Synthesis (aka, the New Keynesian model) reinforces key advances: the priority for price stability, the targeting of core rather than headline inflation, the importance of credibility for low inflation, and preemptive interest rate policy supported by transparent objectives and procedures. The conclusion identifies important practical issues that remain to be explored in theory.

Why we need an "accord" for Federal Reserve credit policy : a note

Treasury-Federal Reserve Accord ; Credit ; Monetary policy

Monetary policy comes of age: a 20th century odyssey

Monetary policy

The phases of U.S. monetary policy : 1987 to 2001

Monetary policy ; Inflation (Finance) ; Interest rates