Category: Monetary Policy
Is the Fed fueling inflation?
Two new research papers on how disagreements between the Fed and the market influence interest rate decisions; and on the equivalence between balance sheet reductions and interest rate increases.
A granular look at historical inflation
New research on how to properly compare present inflation to past inflationary episodes; what are the lessons to be learned.
Inflation targeting: what do economists think?
A look at the theoretical foundation of inflation targeting. The results of a survey of leading researchers and economists from around the world.
Does the public trust central banks?
How do knowledge and attitudes affect the public's trust in central banks. Which central banks are considered trustworthy.
The Fed’s balance sheet runoff and the demand for reserves
New research examines the relation between reserve demand and the effective federal funds rate -interest on reserves spread.
The Fed critics
Will the Fed’s current policy lead to stagflation or its critics are looking at the wrong model?
In defense of average inflation targeting!
Two new working papers argue that average inflation targeting improves central bank credibility and employment of populations with lower labor force attachment.
Asymmetric shocks and monetary policy
What is the optimal monetary policy in the presence of asymmetric shocks in a closed as well as in an open economy?
Optimal policy and HANK models
In HANK models, should optimal policy stabilize consumption inequality or focus on price stability?