Fed's Transition from Monetary to Interest Rate Targets
By: Anonymous
The Fed’s Transition from Monetary Targets to Interest Rate Targets Introduction The Federal Reserve appeared to be taking on a completely different stance in 1994 versus 1993. During 1993 there were no changes in the policy directives of the Federal Open Market Committee and short-term interest rates remained steady. In contrast, during 1994, the FOMC announced six different policy changes while at the same time making an adjustment to the short-term interest rate. This change in policy was …showed first 85 words of 2889 total…
You are viewing only a small portion of the paper. Please login or register to access the full copy.
…showed last 85 words of 2889 total…policy. The effectiveness of this modification of its policy is borne out by the lack of any visible sign of inflation at the end of 1994. Additional time will provide the necessary information to determine if this policy stance is still effective in the future and adjustments will undoubtedly have to be made.
Bibliography
References “The FOMC in 1993 and 1994: Monetary Policy in Transition.” Federal Reserve Bank of St. Louis Review, March,1995 “Flying Swine: Appropriate Targets and Goals of Monetary Policy” Journal of Economic Issues, June, 1996
------------------------------------------------------------------------
**Bibliography**
