On the information content of asymmetric FOMC policy statements: evidence from a Taylor-rule perspective

Michael Pakko

No 2003-016, Working Papers from Federal Reserve Bank of St. Louis

Abstract: Over the past two decades, the FOMC has included in its policy decisions a statement of bias toward subsequent tightening or easing of policy. This paper examines the predictive content of these statements in a Taylor-rule setting, finding that they convey information that is useful for forecasting changes in the federal funds rate target, even after controlling for policy responses to inflation and the output gap. Moreover, the evidence suggests that this asymmetry can be represented in terms of shifts to the parameters of the Taylor-rule equation, indicating a greater or lesser degree of responsiveness to incoming information about inflation and output.

Keywords: Monetary policy; Federal Open Market Committee (search for similar items in EconPapers)
Date: 2003
New Economics Papers: this item is included in nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Economic Inquiry, July 2005, 43(3), pp. 558-69

Downloads: (external link)
http://research.stlouisfed.org/wp/more/2003-016/ (application/pdf)
http://research.stlouisfed.org/wp/2003/2003-016.pdf

Related works:
Journal Article: On the Information Content of Asymmetric FOMC Policy Statements: Evidence From a Taylor-Rule Perspective (2005)
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:fip:fedlwp:2003-016

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of St. Louis Contact information at EDIRC.
Bibliographic data for series maintained by Scott St. Louis ().