THE FEDERAL RESERVE'S DUAL MANDATE AND THE INFLATION‐UNEMPLOYMENT TRADEOFF.
Using Federal Open Market Committee (FOMC) transcripts from 1960 to 2010, this paper examines the evolution of the Committee's approach to the inflation‐unemployment tradeoff. We find: (1) FOMC discussions have increasingly emphasized inflation relative to unemployment and (2) this shift occurred du...
| Published in: | Contemporary Economic Policy Vol. 37; no. 4; pp. 641 - 652 |
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| Main Authors: | , , , |
| Format: | Article |
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Wiley-Blackwell
Oct2019
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| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=138088944&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 138088944 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 10743529 CEY jtl: Contemporary Economic Policy issn: 10743529 maglogo: Y pubinfo: dt: Oct2019 vid: 37 iid: 4 pid: 480 pub: Wiley-Blackwell artinfo: ui: 138088944 10.1111/coep.12422 ppf: 641 ppct: 11 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 180KB tig: atl: THE FEDERAL RESERVE'S DUAL MANDATE AND THE INFLATION‐UNEMPLOYMENT TRADEOFF. aug: au: Kaya, Ayse Golub, Stephen Kuperberg, Mark Lin, Feng affil: Associate Professor, Department of Political Science, Swarthmore College, Swarthmore PA 19081 Professor, Department of Economics, Swarthmore College, Swarthmore PA 19081 Research Professional, Booth School of Business, The University of Chicago, Chicago IL 60637 su: United States. Federal Open Market Committee Federal funds market (U.S.) Taylor's rule sug: subj: United States. Federal Open Market Committee Federal funds market (U.S.) Taylor's rule ab: Using Federal Open Market Committee (FOMC) transcripts from 1960 to 2010, this paper examines the evolution of the Committee's approach to the inflation‐unemployment tradeoff. We find: (1) FOMC discussions have increasingly emphasized inflation relative to unemployment and (2) this shift occurred during the Volcker era and has continued even as inflation itself declined, with the result that the emphasis on inflation has become entrenched and disconnected from actual inflation. Finally, we create an expanded Taylor Rule that includes these FOMC discussions and find that the increased emphasis on inflation is positively correlated with the federal funds rate. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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