Should the Fed regularly evaluate its monetary policy framework?

Jeffrey Fuhrer, Giovanni Olivei, Eric Rosengren () and Geoffrey Tootell

No 18-8, Working Papers from Federal Reserve Bank of Boston

Abstract: Would a more open and regular evaluation of the monetary policy framework improve policy in the United States? Even when considering a relatively short timeframe that spans the 1960s to the present, it is possible to point to many significant changes to the framework. Some of the changes were precipitated by acute economic conditions, while others were considered and implemented only gradually as a response to long-standing problems with the framework. But the process for evaluating and changing frameworks to date has not always been transparent, and changes have not always been timely. Could a more formal, and open, review improve how well we adhere to our current framework? Could transitions to a new framework be made more effectively? We conclude that such a review might indeed be beneficial, and outline one possible review process.

Keywords: monetary policy framework; evolution of monetary policy; FOMC; policy rules (search for similar items in EconPapers)
JEL-codes: E52 E58 E61 (search for similar items in EconPapers)
Pages: 72 pages
Date: 2018-10-01
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
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Citations: View citations in EconPapers (2)

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