The devolution of federal reserve monetary policy strategy, 2012–24.
The Federal Open Market Committee's 2012 Statement on Longer‐Run Goals and Monetary Policy Strategy interprets the Federal Reserve's dual mandate in light of the natural rate hypothesis and the New Keynesian "divine coincidence." It sets a quantitative objective for inflation but not unemployment an...
| Publicado en: | Southern Economic Journal Vol. 91; no. 4; pp. 1247 - 1265 |
|---|---|
| Autor principal: | |
| Formato: | Artículo |
| Publicado: |
Wiley-Blackwell
Apr2025
|
| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=184518945&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 184518945 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00384038 SEJ jtl: Southern Economic Journal issn: 00384038 maglogo: N pubinfo: dt: Apr2025 vid: 91 iid: 4 pid: 480 pub: Wiley-Blackwell artinfo: ui: 184518945 10.1002/soej.12730 ppf: 1247 ppct: 18 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 2.1MB tig: atl: The devolution of federal reserve monetary policy strategy, 2012–24. aug: au: Ireland, Peter N. affil: Department of Economics, Boston College, Chestnut Hill Massachusetts, , USA su: United States. Federal Open Market Committee Board of Governors of the Federal Reserve System (U.S.) Price inflation Unemployment Macroeconomics Economic stabilization Monetary policy Phillips curve Federal Reserve banks sug: subj: Price inflation Unemployment Macroeconomics Economic stabilization United States. Federal Open Market Committee Board of Governors of the Federal Reserve System (U.S.) Monetary Authorities-Central Bank Public Finance Activities Monetary policy Phillips curve Federal Reserve banks keyword: divine coincidence dual mandate Federal Open Market Committee Federal Reserve natural rate hypothesis divine coincidence dual mandate Federal Open Market Committee Federal Reserve natural rate hypothesis ab: The Federal Open Market Committee's 2012 Statement on Longer‐Run Goals and Monetary Policy Strategy interprets the Federal Reserve's dual mandate in light of the natural rate hypothesis and the New Keynesian "divine coincidence." It sets a quantitative objective for inflation but not unemployment and acknowledges that the goals of price stability and maximum employment are generally complementary. The FOMC began deviating from these principles in December 2012, however, and the Committee's 2020 amended Strategy Statement appears to reflect, instead, the older view that the Phillips curve describes an exploitable trade‐off between inflation and unemployment. To bring its strategy back in line with the lessons of contemporary macroeconomic theory, the FOMC could simply abandon the 2020 amendments and return to its original 2012 framework. Alternatively, the Committee could eliminate the asymmetries and ambiguities that prevent its new strategy from having the desirable properties of a true price level targeting scheme. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
|---|