EconPapers    
Economics at your fingertips  
 

Does the Greenspan era provide evidence on leadership in the FOMC?

Makram El-Shagi and Alexander Jung

Journal of Macroeconomics, 2015, vol. 43, issue C, 173-190

Abstract: The aim of this paper is to examine whether the Federal Reserve chair has influenced the voting behaviour of the Reserve Bank Presidents. In view of data constraints, the present empirical analysis focuses on Alan Greenspan’s chairmanship. Individual Taylor-type reaction functions for the Federal Reserve Districts are estimated using Presidents’ interest rate preferences voiced during the second round of the internal FOMC discussions and real-time data. They show that the Federal Reserve Bank Presidents did not systematically deviate from the Chairman’s reaction function. In addition, a bootstrap analysis finds that the second-round preferences of these members appear to have been influenced by a consensus enhancing factor. Overall, the empirical evidence presented in this paper is consistent with the notion that Chairman Greenspan has influenced the Reserve Bank Presidents in their voting behaviour when achieving a consensus on interest rates.

Keywords: Federal Reserve Districts; Greenspan era; Real-time data; Individual reaction functions; Bootstrap (search for similar items in EconPapers)
JEL-codes: C15 C53 D72 E58 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S016407041400127X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Does the Greenspan era provide evidence on leadership in the FOMC? (2013) Downloads
Working Paper: Does the Greenspan Era Provide Evidence on Leadership in the FOMC? (2012) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:43:y:2015:i:c:p:173-190

DOI: 10.1016/j.jmacro.2014.11.001

Access Statistics for this article

Journal of Macroeconomics is currently edited by Douglas McMillin and Theodore Palivos

More articles in Journal of Macroeconomics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-23
Handle: RePEc:eee:jmacro:v:43:y:2015:i:c:p:173-190