Expectations and the effects of monetary policy [microform] / Laurence Ball, Dean Croushore.
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| Other title: | ASI series title on the microfiche header: Philadelphia research working papers. |
| Format: | Microfilm Book |
| Language: | English |
| Published: |
Philadelphia, Pa. :
Economic Research Division, Federal Reserve Bank of Philadelphia,
[2001]
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| Series: | Working paper (Federal Reserve Bank of Philadelphia) ;
no. 01-12. ASI microfiche library. Non-depository collection ; ASI 2001 9387-8.497. |
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| Abstract: | This paper examines the predictive power of shifts in monetary policy, as measured by changes in the real federal funds rate, for output, inflation, and survey expectations of these variables. The authors find that policy shifts have larger effects on actual output than on expected output; thus policy predicts errors in output expectations, a violation of rational expectations. Policy shifts do not predict errors in inflation expectations. The authors explain these results with a model in which agents systematically underestimate the effects of policy on aggregate demand. This model helps to explain the real effects of policy.--FRB Philadelphia web site. |
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| Item Description: | "August 2001." Revises and supersedes a June 1998 paper. |
| Physical Description: | 28 pages, 3 unnumbered pages ; 28 cm. Also available via the Internet at the FRB Philadelphia web site. |
| Bibliography: | Includes bibliographical references (pages 25-28) |
| Reproduction Note: | Microfiche. |
| Additional Physical Form available Note: | Also available via the Internet at the FRB Philadelphia web site. |
| Citation/References Note: | Lexis/Nexis statistical; American statistical index. Abstracts. |