Research by Federal Reserve staff suggests that, all told, U. Do conventional and unconventional monetary policies spill over to other countries differently? And to what extent are U. Conclusion In closing, I would like to commend the Federal Reserve Bank of Boston for organizing this conference and fostering research and debate on questions vital to our understanding of the economy.
Answering these questions will help the Federal Reserve's efforts to promote a healthy economy, and I am grateful for the opportunity to speak to you today and be part of this important discussion. References Agnello, Luca, and Ludger Schuknecht Akerlof, George A.
- Five Pieces, Op. 102, III. (Piano Score)!
- Financial Crisis Resources?
- A Century of Monetary Policy at the Fed;
- A Century of Monetary Policy at the Fed : David E. Lindsey : .
- Closing Panel Presentation.
Dickens, and George L. Perry Rose, and Janet L. Yellen Auclert, Adrien Bernanke, Ben S.
Interest On Reserves, Part I - Alt-M
Taylor and Michael Woodford, eds. Amsterdam: Elsevier, pp. Mishkin, and Adam S. Posen b.
- Faulkner and film.
- Federal Reserve Board - Macroeconomic Research After the Crisis.
- Press Releases.
- Unwinding QE.
Inflation Targeting: Lessons from the International Experience. Princeton, N.
Former Federal Reserve Chairs on Monetary Policy and the Economy
Blanchard, Olivier Washington: International Monetary Fund, November. Blanchard, Olivier J. Summers Cambridge, Mass. Blinder, Alan S. The Fabulous Decade: Macroeconomic Lessons from the s. New York: Century Foundation Press. Cerra, Valerie, and Sweta Chaman Saxena Chodorow-Reich, Gabriel Clark, Todd E. Clementi, Gian Luca, and Berardino Palazzo Daly, Mary C. Del Negro, Marco, Marc P. Giannoni, and Frank Schorfheide Dokko, Jane, Brian M. Doyle, Michael T. Fair, Ray C. Estimating How the Macroeconomy Works. Fallick, Bruce C.
Wascher Faust, Jon, and Jonathan H. Wright Fernald, John G. Parker and Michael Woodford, eds. Chicago: University of Chicago Press, pp. Fleming, J. Marcus Tokyo: BOJ, November. Georgiadis, Georgios Gertler, Mark, and Peter Karadi Glick, Reuven, and Sylvain Leduc Gordon, Robert J. Guvenen, Fatih Holzer, Harry J. Stoll Ilzetski, Ethan, and Keyu Jin London: London School of Economics, February. Violante Kashyap, Anil K. Stein Katz, Lawrence F. Krueger Khan, Aubhik, and Julia K. Thomas Kiley, Michael T. Krusell, Per, and Anthony A. Smith, Jr. Martin, Robert F.
Stock Mundell, Robert A.
Okun, Arthur M. Parker, Jonathan A. Souleles, David S. Johnson, and Robert McClelland Peek, Joe, and Eric S. Rosengren Peek, Joe, Eric S. Rosengren, and Geoffrey M. Tootell Atkinson and Francois Bourguignon, eds. Wilcox Siemer, Michael Solow, Robert M. Sterk, Vincent, and Silvana Tenreyro Zurich: Council on Economic Policies, January. Summers, Laurence H. London: Centre for Economic Policy Research, pp. Yellen, Janet L. Or, as Summers asked in a pithy inversion of Say's law, is it true that "lack of demand creates lack of supply? Return to text. As Blanchard and Summers discuss, the question at the time was whether the long-run equilibrium, or "natural," rate of unemployment in European economies had been permanently raised by previous periods of high actual unemployment.
See Reifschneider, Wascher, and Wilcox Fernald , however, argues that much of the apparent slowdown in U. See Okun for an early discussion of the benefits of a high-pressure economy. Importantly, not all of these benefits might show up as measured output, but they would nonetheless be welfare improving--for example, higher job satisfaction from better matches between workers and employers, as noted by Akerlof, Rose, and Yellen For example, the experience of the s might seem to provide a natural case study of whether reverse hysteresis is possible.
Unfortunately, most studies of the labor market during this period do not directly speak to this issue, although Holzer, Raphael, and Stoll investigate changes in employers' willingness to hire less-skilled workers during these years, while Katz and Krueger and my own study with Blinder explore the somewhat related question of how the U.
See Krueger, Mitman, and Perri A general-equilibrium model with heterogeneity among firms and credit frictions is studied in Khan and Thomas For the role of entry and exit in macroeconomic dynamics, see Clementi and Palazzo as well as Gourio, Messer, and Siemer For early quantitative work on the relationship between income and wealth heterogeneity and the macroeconomy, see Krusell and Smith Guvenen reviews several issues related to macroeconomics with heterogeneity.
For an overview of the interactions between distribution and aggregate outcomes, see the work by Quadrini and Rios-Rull For recent work on the effects of monetary policy in models with heterogeneous agents, see Kaplan, Moll, and Violante ; Gornemann, Kuester, and Nakajima ; Auclert ; and Sterk and Tenreyro For an example of early research on this topic, see Bernanke and Gertler For a more recent summary of the role of banks in the monetary transmission mechanism, see Peek and Rosengren Chaney, Sraer, and Thesmer provide evidence for the collateral channel of real estate for corporate investment, while Mian, Rao, and Sufi examine the influence of household balance sheets on consumption.
More empirical work would be useful to disentangle the spending effects that result from changes in credit conditions from those that result from movements in interest rates, as estimates of the latter likely often inadvertently incorporate the former. Most empirical models of the overall economy do not explicitly control for the influence of noninterest credit factors on consumption and investment; as a result, estimated interest rate effects will partially reflect the influence of these factors to the extent these factors are correlated with interest rates.
There are many reasons to suspect that this is the case. Movements in interest rates influence a firm's cash flow and the value of its collateral, all else being equal. Higher interest rates also adversely affect consumer spending and especially residential investment, both by forcing households to devote a greater portion of their income to debt service and by making it more difficult to qualify for a loan because of maximum payment-to-income rules.
Evidence for these effects is provided by Gertler and Karadi , who show that relatively small changes in short-term interest rates are correlated with large movements in credit costs. Such correlations and interactions may explain why some types of spending appear to be more correlated with movements in nominal interest rates than with real interest rates; see Fair , ch. Finally, the relative contributions of relaxed lending standards, low interest rates, and other factors to housing bubbles, both in the United States and abroad, remains an open and unsettled topic; Agnello and Shucknecht present cross-country evidence that monetary policy plays an important role, while Dokko and others argue that monetary policy was a minor influence in the most recent episode.
See Mian, Rao, and Sufi for an assessment of the role of leverage and housing wealth shocks in driving consumption during the Great Recession.
follow site Work by Justiniano, Primiceri, and Tambalotti suggests that debt overhang alone cannot explain the slow recovery from the Great Recession. He also quantitatively explores an alternative to the conventional New-Keynesian theory of inflation, replacing so-called "rational expectations" with the Fed's inflation objective.
This unique volume is a piece of living history that has much to offer economists and monetary policy and finance professionals.
Product details Format Hardback pages Dimensions x x Other books in this series. Add to basket. Atlantic Metropolis Aaron Gurwitz. Back cover copy In this narrative history, David E. Table of contents 1. Saying Oops: Assuming the Chairmanship 7. Strengthening Financial Regulations Experiencing Deflation or Disinflation around the World Concluding the Book show more. Review Text "How the Federal Reserve handled the financial crisis continues to be hotly debated.
Here is an outstanding insider's view of the crisis, targeting advanced students of economics. Summing Up: Highly recommended. Upper-division undergraduates through faculty. Janney, Choice, Vol. Review quote "How the Federal Reserve handled the financial crisis continues to be hotly debated. About David E. Lindsey David E. Lindsey was a year veteran of the Federal Reserve Board's senior staff when he retired in Learn about new offers and get more deals by joining our newsletter.