Suchergebnisse

Models, markets and monetary policy / Richard H. Clarida -- The case for implementing effective negative interest rate policy / Andrew Lilley and Kenneth Rogoff -- Tying down the anchor : monetary policy rules and the lower bound on interest rates / Thomas M. Mertens and John C. Williams -- Perspectives on US monetary policy tools and instruments / James D. Hamilton -- Evaluating rules in the Fed's report and measuring discretion / John H. Cochrane, John B. Taylor, and Volker Wieland -- The interaction of markets and policy : a corporate finance perspective / Laurie Simon Hodrick -- The Fed and financial markets : suggestions to improve an unhealthy relationship / Mickey D. Levy -- Market feedback effects of central bank operations under an inflation-targeting regime / B. Scott Minerd -- Optimal monetary policy and inequality / James Bullard -- Monetary policies in practice / Mary C. Daly -- Discussion of key issues impacting achievement of the Fed's 2% inflation objective / Robert S. Kaplan -- Improving our monetary policy strategy / Loretta J. Mester.

"Since the mid-1980s, monetary policy has contributed to a great moderation of the housing cycle by responding more proactively to inflation and thereby reducing the boom bust cycle. However, during the period from 2002 to 2005, the short term interest rate path deviated significantly from what this two decade experience would suggest is appropriate. A counterfactual simulation with a simple model of the housing market shows that this deviation may have been a cause of the boom and bust in housing starts and inflation in the last two years. Moreover, a significant time series correlation between housing price inflation and delinquency rates suggests that the poor credit assessments on subprime mortgages may also have been caused by this deviation"--National Bureau of Economic Research web site

The introduction of inflation targets in Canada in 1991 ostensibly clarified the objectives of monetary policy, namely the pursuit of price stability. In doing so, one of the objectives of the new policy was to ensure that the public would henceforth be able to assess more easily monetary policy performance based on the Bank of Canada's record at achieving low and stable inflation. An obvious question then is to ascertain whether in fact, as the Governor the Bank stated recently,"... public commentary on monetary policy since 1991 has involved a fairer assessment of the performance of the Bank of Canada.ʺ Using information compiled on commentary about the Bank of Canada, and monetary policy in general, collected from the Globe and Mail and Financial Post national newspapers, we evaluate how favourable or critical such commentaries have been since 1986. In so doing, we examine a sample before inflation control targets were introduced, as well as the period since. The Bank of Canada also aims to influence expectations and financial market perceptions of its performance. Additional tests, using daily interest rate and exchange rates and monthly inflation and inflation forecast data, are presented which shed light on this question.