Reflections on the strategy of monetary policy

The President of the Richmond Fed argues that: [1] price stability ought to be the overriding goal of monetary policy; [2] procedures for controlling the money supply need to be improved; and [3] monetary policy must be prepared to respond promptly to inflationary pressures.Monetary policy

In support of price stability

Testimony by the President of the Federal Reserve Bank of Richmond in support of House Joint Resolution 409. That bill, sponsored by Rep. Stephen Neal (D-NC) would require the Federal Reserve to achieve zero inflation within five years of passage.Inflation (Finance) ; Monetary policy

The Fed's anti-inflationary strategy: is it adequate?

Inflation remains a potential longer-run threat to the health of the economy despite the progress made in reducing the inflation rate in recent years. The Fed must have a credible strategy in place to meet this threat. As Richmond Fed president Robert P. Black notes in this speech to business economists, a strategy centered around targeting monetary aggregates may still be the best approach over time, even after account is taken of the technical problems encountered in using aggregates as targets in the 1980s. Black argues that the substitution of a rule for the present discretionary approach to monetary policy would significantly increase the Fed’s potential contribution to the economy’s performance.Monetary policy ; Money supply ; Inflation (Finance)

The Fed's mandate : help or hindrance?

The Federal Reserve System is faced with a myriad of objectives in the area of monetary policy: some people believe the Fed should use monetary policy to keep interest rates low, other think the primary goal should be to increase business activity and decrease unemployment, and still others feel the Fed’s proper role is to promote price stability. In his speech, “The Fed’s Mandate: Help or Hindrance?”, Federal Reserve Bank of Richmond President Robert P. Black argues that this multitude of objectives weakens monetary policy by preventing the Fed from pursuing a more limited but more attainable long-run program. Black asserts that, contrary to popular belief, the present abundance of objectives decreases the Fed’s independence by subjecting it to intense pressures from competing interest groups, each advocating one particular goal. Price stability, he contends, is the only feasible long-run objective for monetary policy. Black concludes by saying that the best way to achieve permanent price stability is to lower the growth rate of the money supply to a steady noninflationary rate and keep it there.Federal Reserve System ; Monetary policy

Reflections on the October 6, 1979, meeting of the FOMC

Federal Open Market Committee ; Monetary policy

Reflections on the strategy of monetary policy

The President of the Richmond Fed argues that: [1] price stability ought to be the overriding goal of monetary policy; [2] procedures for controlling the money supply need to be improved; and [3] monetary policy must be prepared to respond promptly to inflationary pressures.Monetary policy

Reflections on deposit insurance

A crucial public policy issue is the need for reform of the nation’s deposit insurance system. This article discusses the role of deposit insurance and outlines some proposals for reform.Bank deposits ; Deposit insurance

The Fed's anti-inflationary strategy: is it adequate?

Inflation remains a potential longer-run threat to the health of the economy despite the progress made in reducing the inflation rate in recent years. The Fed must have a credible strategy in place to meet this threat. As Richmond Fed president Robert P. Black notes in this speech to business economists, a strategy centered around targeting monetary aggregates may still be the best approach over time, even after account is taken of the technical problems encountered in using aggregates as targets in the 1980s. Black argues that the substitution of a rule for the present discretionary approach to monetary policy would significantly increase the Fed’s potential contribution to the economy’s performance.Monetary policy ; Money supply ; Inflation (Finance)

Monetary policy - the possible and the impossible

An abstract for this article is not available.Monetary policy