Fed considered extreme measures

edickens edickens at DREW.EDU
Tue Mar 26 10:15:50 PST 2002


By "transparent" I mean locked into a certain level of the Federal Funds rate as the measure of the ease, restraint or neutrality of monetary policy (e.g., tightening would mean raising the Federal Funds rate, etc.). A (the?) central theme of the history of monetary thought has been an effort to explain why things are not so simple (e.g., raising the Federal Funds rate would "not really" be tightening if the inflation rate rose by an equiproportional amount or a monetary aggregate was shrinking or financial market conditions were becoming more fragile or... etc.).

Tom Dickens

Seth Ackerman wrote:


>
> When you say "transparent" monetary policy, you mean the requirements that
> they release minutes and transcripts?
>
> Seth



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