The Fed’s Consistent Monetary Policy: A Long Term Perspective

Abstract: This paper describes the Federal Reserve's analytical framework under Volcker and Greenspan, as it was constructed in the early 1980s, during a period of high inflation. It traces the modeling and policy implications of this framework. It discusses the Fed's actual track record and the state of the US economy in which the Fed operated and how the Fed's policies interact with US federal fiscal policies. It also discusses why the Fed ignoes the dollar's value and why it remains immune to party politics. The paper summarizes the author's perspective on US monetary policy. It is based on an address delivered by the author at the Second International Conference on Forecasting the Singapore Economy and Annual Review of Central Banking Policies in the Asia- Pacific Basin in Singapore on August 29, 1996.

Keywords: Monetary policy; modeling; fiscal policy; dollar value (search for similar items in EconPapers)
JEL-codes: C50 E42 E52 E61 F31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
Date: Written 2004-11-16
Note: Type of Document - pdf; pages: 16

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