Personal saving and economic growth

Many analysts fear that a rising saving rate could hamper the economic recovery.Saving and investment ; Economic conditions

Making monetary policy more transparent

Monetary policy

Predictability and effectiveness of monetary policy

Monetary policy

The federal funds and long-term rates

Federal funds rate

Money demand dynamics: some new evidence

Demand for money

Monetary policy and longer-term rates: an opportunity for greater transparency

The FOMC’s two-pronged approach involves a potential conflict: forward guidance assumes a high degree of substitutability across the maturity structure, while quantitative easing assumes a low degree.Monetary policy - United States ; Federal funds market (United States)

Identifying the liquidity effect at the daily frequency

Liquidity (Economics) ; Monetary policy

Testing the Expectations Hypothesis: Some New Evidence for Japan

The deregulation of the Japanese financial markets and the adoption of an interest rate policy instrument by the Bank of Japan prompted a number of empirical investigations of the expectations hypothesis (EH) of the term-structures of interest rates in Japan. This paper is a continuation of this research. It deviates from the previous work on the EH in Japan in two respects. First, it tests the EH by estimating a general vector autoregression (VAR) of the long-term and short-term rates and testing the restrictions implied by the EH on the VAR using a Lagrange multiplier (LM) test. Second, the issue of stationarity of interest rates is considered. The paper not only considers the possibility that Japanese interest rates are nonstationary, but also analyzes the implications of nonstationarity for the EH.

Which comes first: inflation or the FOMC's funds rate target?

Must the FOMC increase its target before inflation, or will inflation increase and cause the FOMC to increase its target?Inflation (Finance) ; Federal funds rate ; Federal Open Market Committee

The downside of quantitative easing

Current excess reserves could create a massive increase in the money supply if banks significantly increase their lending or investing.Monetary policy - United States ; Money supply ; Financial crises