Monetary policy

International Dimensions to U.S. Monetary Policy Executive Summary Federal Reserve monetary policy has traditionally focused on the domestic economy. Over time, however, a number of significant trends have underscored the potential importance of the international dimensions of contemporary monetary policy. Such trends include the following: · Financial markets continue to become increasingly integrated internationally; capital is evermore mobile. · The U.S. dollar continues to remain the world’s principal international currency despite evolving exchange rate …

…delivery at the American Economic Association, New York, January 3, 1999. 33. It should be noted that key market price indicators (i.e., commodity prices, bond yields, and the foreign exchange value of the dollar) were signaling the Federal Reserve to ease at the time and broad measures of price inflation were benign. 34. For a discussion of these responsibilities and ways to implement them, see Keleher op. cit., p. 9. 35. See discussion in Keleher, op. cit., p.9. Return Home