Floating Exchange Rates After Ten Years
Total Page:16
File Type:pdf, Size:1020Kb
Load more
Recommended publications
-
Understanding Open Market Operations
Foreword The Federal Reserve Bank of New York is responsible for Michael Akbar Akhtar, vice president of the day-to-day implementation of the nation’s monetary pol- Federal Reserve Bank of New York, leads the reader— icy. It is primarily through open market operations—pur- whether a student, market professional or an interested chases or sales of U.S. Government securities in the member of the public—through various facets of mone- open market in order to add or drain reserves from the tary policy decision-making, and offers a general per- banking system—that the Federal Reserve influences spective on the transmission of policy effects throughout money and financial market conditions that, in turn, the economy. affect output, jobs and prices. Understanding Open Market Operations pro- This edition of Understanding Open Market vides a nontechnical review of how monetary policy is Operations seeks to explain the challenges in formulat- formulated and executed. Ideally, it will stimulate read- ing and implementing U.S. monetary policy in today’s ers to learn more about the subject as well as enhance highly competitive financial environment. The book high- appreciation of the challenges and uncertainties con- lights the broad and complex set of considerations that fronting monetary policymakers. are involved in daily decisions for open market opera- William J. McDonough tions and details the steps taken to implement policy. President Understanding Open Market Operations / i Acknowledgment Much has changed in U.S. financial markets and institu- Partlan for extensive comments on drafts; and to all of tions since 1985, when the last edition of Open Market the Desk staff for graciously and patiently answering my Operations, written by Paul Meek, was published. -
FOMC Statement
For release at 2 p.m. EDT July 28, 2021 The Federal Reserve is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals. With progress on vaccinations and strong policy support, indicators of economic activity and employment have continued to strengthen. The sectors most adversely affected by the pandemic have shown improvement but have not fully recovered. Inflation has risen, largely reflecting transitory factors. Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses. The path of the economy continues to depend on the course of the virus. Progress on vaccinations will likely continue to reduce the effects of the public health crisis on the economy, but risks to the economic outlook remain. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. With inflation having run persistently below this longer-run goal, the Committee will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer‑term inflation expectations remain well anchored at 2 percent. The Committee expects to maintain an accommodative stance of monetary policy until these outcomes are achieved. The Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the Committee’s assessments of maximum employment and inflation has risen to 2 percent and is on (more) For release at 2 p.m. -
Cy Martin Collection
University of Oklahoma Libraries Western History Collections Cy Martin Collection Martin, Cy (1919–1980). Papers, 1966–1975. 2.33 feet. Author. Manuscripts (1968) of “Your Horoscope,” children’s stories, and books (1973–1975), all written by Martin; magazines (1966–1975), some containing stories by Martin; and biographical information on Cy Martin, who wrote under the pen name of William Stillman Keezer. _________________ Box 1 Real West: May 1966, January 1967, January 1968, April 1968, May 1968, June 1968, May 1969, June 1969, November 1969, May 1972, September 1972, December 1972, February 1973, March 1973, April 1973, June 1973. Real West (annual): 1970, 1972. Frontier West: February 1970, April 1970, June1970. True Frontier: December 1971. Outlaws of the Old West: October 1972. Mental Health and Human Behavior (3rd ed.) by William S. Keezer. The History of Astrology by Zolar. Box 2 Folder: 1. Workbook and experiments in physiological psychology. 2. Workbook for physiological psychology. 3. Cagliostro history. 4. Biographical notes on W.S. Keezer (pen name Cy Martin). 5. Miscellaneous stories (one by Venerable Ancestor Zerkee, others by Grandpa Doc). Real West: December 1969, February 1970, March 1970, May 1970, September 1970, October 1970, November 1970, December 1970, January 1971, May 1971, August 1971, December 1971, January 1972, February 1972. True Frontier: May 1969, September 1970, July 1971. Frontier Times: January 1969. Great West: December 1972. Real Frontier: April 1971. Box 3 Ford Times: February 1968. Popular Medicine: February 1968, December 1968, January 1971. Western Digest: November 1969 (2 copies). Golden West: March 1965, January 1965, May 1965 July 1965, September 1965, January 1966, March 1966, May 1966, September 1970, September 1970 (partial), July 1972, August 1972, November 1972, December 1972, December 1973. -
Payment System Disruptions and the Federal Reserve Followint
Working Paper Series This paper can be downloaded without charge from: http://www.richmondfed.org/publications/ Payment System Disruptions and the Federal Reserve Following September 11, 2001† Jeffrey M. Lacker* Federal Reserve Bank of Richmond, Richmond, Virginia, 23219, USA December 23, 2003 Federal Reserve Bank of Richmond Working Paper 03-16 Abstract The monetary and payment system consequences of the September 11, 2001, terrorist attacks are reviewed and compared to selected U.S. banking crises. Interbank payment disruptions appear to be the central feature of all the crises reviewed. For some the initial trigger is a credit shock, while for others the initial shock is technological and operational, as in September 11, but for both types the payments system effects are similar. For various reasons, interbank payment disruptions appear likely to recur. Federal Reserve credit extension following September 11 succeeded in massively increasing the supply of banks’ balances to satisfy the disruption-induced increase in demand and thereby ameliorate the effects of the shock. Relatively benign banking conditions helped make Fed credit policy manageable. An interbank payment disruption that coincided with less favorable banking conditions could be more difficult to manage, given current daylight credit policies. Keywords: central bank, Federal Reserve, monetary policy, discount window, payment system, September 11, banking crises, daylight credit. † Prepared for the Carnegie-Rochester Conference on Public Policy, November 21-22, 2003. Exceptional research assistance was provided by Hoossam Malek, Christian Pascasio, and Jeff Kelley. I have benefited from helpful conversations with Marvin Goodfriend, who suggested this topic, David Duttenhofer, Spence Hilton, Sandy Krieger, Helen Mucciolo, John Partlan, Larry Sweet, and Jack Walton, and helpful comments from Stacy Coleman, Connie Horsley, and Brian Madigan. -
Hayghe, Howard TITLE Families and the Rise of Working Wives--An Overview
DOCUMENT RESUME ED 131 235 CE 008 295 AUTHOR Hayghe, Howard TITLE Families and the Rise of Working Wives--an Overview. Special Labor Force Report 189. INSTITUTION Bureau of Labor Statistics (DOL), Washington, D.C., PUB DATE 76 NOTE 12p.; Reprint from Monthly Labor Review; May 1976 EDRS PRICE MF-=0.83 HC-81.67 Plus'Postage. DESCRIPTORS *Birth Rate; Business Cycles; Economic Climate; *Eiployment Trends; *Family (Sociological Unit); *Labor Force; *Manpower Needs; National Surveys; Population Trends; Statistical Surveys; *Working Women IDENTIFIERS United States ABSTRACT Past and current trénds in the growth of families with two workers or more are examined in this article. It discusses such subjects as influence of trends in fertility On the growth of these families, the relation between husbands' and wives' occupations, and some of the impact of the recession and inflation on these families. Tables and statistical data are included to support content. (WL) Families and the Rise of Working Wives an Overview Special Labor Force Report 189 U.S. DEPARTMENT Of LABOR Bureau Of Labor Statistics Unless identified as copyrighted, articles and tabulations in this publication are in the public domain and may be reproduced without permissionof the 'Federal government. Please credit the Bureau of Labor Statistics. Following is a list of reprints of Special Labor Force Reports which have been published in the Monthly Labor Review since February 1970. Copies may be obtained, while the supply lasts, upon request to the Bureya u of Labor Statistic or to any of its regional offices. Number 151 Employment of Recent College Graduates, October 1971 152 Changes in the Employment Situation in 1972 153 Marital and Family Characteristics of the Labor Force, March 1972 • 154 Children of Working Mothera, March 1973 155 Employment of High School Graduates and Dropouts, October 1972 156 The U.S. -
Recent Monetary Policy in the US
Loyola University Chicago Loyola eCommons School of Business: Faculty Publications and Other Works Faculty Publications 6-2005 Recent Monetary Policy in the U.S.: Risk Management of Asset Bubbles Anastasios G. Malliaris Loyola University Chicago, [email protected] Marc D. Hayford Loyola University Chicago, [email protected] Follow this and additional works at: https://ecommons.luc.edu/business_facpubs Part of the Business Commons Author Manuscript This is a pre-publication author manuscript of the final, published article. Recommended Citation Malliaris, Anastasios G. and Hayford, Marc D.. Recent Monetary Policy in the U.S.: Risk Management of Asset Bubbles. The Journal of Economic Asymmetries, 2, 1: 25-39, 2005. Retrieved from Loyola eCommons, School of Business: Faculty Publications and Other Works, http://dx.doi.org/10.1016/ j.jeca.2005.01.002 This Article is brought to you for free and open access by the Faculty Publications at Loyola eCommons. It has been accepted for inclusion in School of Business: Faculty Publications and Other Works by an authorized administrator of Loyola eCommons. For more information, please contact [email protected]. This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License. © Elsevier B. V. 2005 Recent Monetary Policy in the U.S.: Risk Management of Asset Bubbles Marc D. Hayford Loyola University Chicago A.G. Malliaris1 Loyola University Chicago Abstract: Recently Chairman Greenspan (2003 and 2004) has discussed a risk management approach to the implementation of monetary policy. This paper explores the economic environment of the 1990s and the policy dilemmas the Fed faced given the stock boom from the mid to late 1990s to after the bust in 2000-2001. -
Appeal No. 1918 - John Marshall STUART, Jr
Appeal No. 1918 - John Marshall STUART, Jr. v. US - 30 March, 1973 ________________________________________________ IN THE MATTER OF MERCHANT MARINER'S DOCUMENT NO. Z-1277892 AND ALL OTHER SEAMAN'S DOCUMENTS Issued to:John Marshall STUART, Jr. DECISION OF THE COMMANDANT UNITED STATES COAST GUARD 1918 John Marshall STUART, Jr. This appeal has been taken in accordance with Title 46 United States Code 239b and Title 46 Code Federal Regulations 137.30-1. By order dated 26 March 1970, an Administrative Law Judge of the United States Coast Guard at New York, New York revoked Appellant's seaman's documents upon finding him guilty of the charge of "conviction for a narcotic drug law violation." The specification found proved alleges that Appellant, holder of the document above captioned, was on 19 March 1969 convicted by a court of record at Balboa, Canal Zone, for violation of a narcotic drug law of the zone, possession of marijuana. At the hearing, Appellant was represented by Professional counsel. Appellant entered a plea of not guilty to the charge and specification. The Investigating Officer introduced in evidence records of the Magistrate's Court of Balboa, Canal Zone. In defense, Appellant offered no evidence. file:////hqsms-lawdb/users/KnowledgeManagementD...20&%20R%201680%20-%201979/1918%20-%20STUART.htm (1 of 9) [02/10/2011 10:27:55 AM] Appeal No. 1918 - John Marshall STUART, Jr. v. US - 30 March, 1973 At the end of the hearing, the Administrative Law Judge rendered a written decision in which he concluded that the charge and specification had been proved. -
Spending and the Exchange Rate in the Keynesian Model
CAVE.6607.cp18.p327-352 6/6/06 12:09 PM Page 327 CHAPTER 18 Spending and the Exchange Rate in the Keynesian Model hapter 17 developed the Keynesian model for determining income and the trade balance in an open economy. In this chapter we consider some further applica- Ctions of the same model, including how governments can change spending in pursuit of two of their fondest objectives—income and the trade balance. We begin with the question of how changes in spending are transmitted from one country to another. Throughout, we focus particularly on the role that changes in the exchange rate play in the process. We bring together the analysis of flexible exchange rates from Chapter 16 with the analysis of changes in expenditure from Chapter 17. 18.1 Transmission of Disturbances Section 17.5 showed how income in one country depends on income in the rest of the world, through the trade balance. The effect varies considerably, depending on what is assumed about the exchange rate. This section compares the two exchange rate regimes, fixed and floating, with respect to the international transmission of economic disturbances.This comparison is one of the criteria that a country might use in deciding which of the regimes it prefers. Transmission Under Fixed Exchange Rates Our starting point will be the regime of fixed exchange rates. For simplicity, return to the small-country model of Section 17.1. In other words, ignore any repercussion effects via changes in foreign income. As Equation 17.9 implies, an internal distur- bance, such as a fall in investment demand DI, changes domestic income by DY 1 5 (18.1) DI s 1 m in the small-country model. -
Money Supply ECON 40364: Monetary Theory & Policy
Money Supply ECON 40364: Monetary Theory & Policy Eric Sims University of Notre Dame Fall 2017 1 / 59 Readings I Mishkin Ch. 3 I Mishkin Ch. 14 I Mishkin Ch. 15, pg. 341-348 2 / 59 Money I Money is defined as anything that is accepted as payments for goods or services or in the repayment of debts I Money serves three functions: 1. Medium of exchange 2. Unit of account 3. Store of value I Any asset can serve as a store of value (e.g. house, land, stocks, bonds), but most assets do not perform the first two roles of money I Money is a stock concept { how much money you have (in your wallet, in the bank) at a given point in time. Income is a flow concept 3 / 59 Roles of Money I Medium of exchange role is the most important role of money: I Eliminates need for barter, reduces transactions costs associated with exchange, and allows for greater specialization I Unit of account is important (particularly in a diverse economy), though anything could serve as a unit of account I As a store of value, money tends to be crummy relative to other assets like stocks and houses, which offer some expected return over time I An advantage money has as a store of value is its liquidity I Liquidity refers to ease with which an asset can be converted into a medium of exchange (i.e. money) I Money is the most liquid asset because it is the medium of exchange I If you held all your wealth in housing, and you wanted to buy a car, you would have to sell (liquidate) the house, which may not be easy to do, may take a while, and may involve selling at a discount if you must do it quickly 4 / 59 Evolution of Money and Payments I Commodity money: money made up of precious metals or other commodities I Difficult to carry around, potentially difficult to divide, price may fluctuate if precious metal or commodity has consumption value independent of medium of exchange role I Paper currency: pieces of paper that are accepted as medium of exchange. -
Greenspan's Conundrum and the Fed's Ability to Affect Long-Term
Research Division Federal Reserve Bank of St. Louis Working Paper Series Greenspan’s Conundrum and the Fed’s Ability to Affect Long- Term Yields Daniel L. Thornton Working Paper 2012-036A http://research.stlouisfed.org/wp/2012/2012-036.pdf September 2012 FEDERAL RESERVE BANK OF ST. LOUIS Research Division P.O. Box 442 St. Louis, MO 63166 ______________________________________________________________________________________ The views expressed are those of the individual authors and do not necessarily reflect official positions of the Federal Reserve Bank of St. Louis, the Federal Reserve System, or the Board of Governors. Federal Reserve Bank of St. Louis Working Papers are preliminary materials circulated to stimulate discussion and critical comment. References in publications to Federal Reserve Bank of St. Louis Working Papers (other than an acknowledgment that the writer has had access to unpublished material) should be cleared with the author or authors. Greenspan’s Conundrum and the Fed’s Ability to Affect Long-Term Yields Daniel L. Thornton Federal Reserve Bank of St. Louis Phone (314) 444-8582 FAX (314) 444-8731 Email Address: [email protected] August 2012 Abstract In February 2005 Federal Reserve Chairman Alan Greenspan noticed that the 10-year Treasury yields failed to increase despite a 150-basis-point increase in the federal funds rate as a “conundrum.” This paper shows that the connection between the 10-year yield and the federal funds rate was severed in the late 1980s, well in advance of Greenspan’s observation. The paper hypothesize that the change occurred because the Federal Open Market Committee switched from using the federal funds rate as an operating instrument to using it to implement monetary policy and presents evidence from a variety of sources supporting the hypothesis. -
FEDERAL FUNDS Marvin Goodfriend and William Whelpley
Page 7 The information in this chapter was last updated in 1993. Since the money market evolves very rapidly, recent developments may have superseded some of the content of this chapter. Federal Reserve Bank of Richmond Richmond, Virginia 1998 Chapter 2 FEDERAL FUNDS Marvin Goodfriend and William Whelpley Federal funds are the heart of the money market in the sense that they are the core of the overnight market for credit in the United States. Moreover, current and expected interest rates on federal funds are the basic rates to which all other money market rates are anchored. Understanding the federal funds market requires, above all, recognizing that its general character has been shaped by Federal Reserve policy. From the beginning, Federal Reserve regulatory rulings have encouraged the market's growth. Equally important, the federal funds rate has been a key monetary policy instrument. This chapter explains federal funds as a credit instrument, the funds rate as an instrument of monetary policy, and the funds market itself as an instrument of regulatory policy. CHARACTERISTICS OF FEDERAL FUNDS Three features taken together distinguish federal funds from other money market instruments. First, they are short-term borrowings of immediately available money—funds which can be transferred between depository institutions within a single business day. In 1991, nearly three-quarters of federal funds were overnight borrowings. The remainder were longer maturity borrowings known as term federal funds. Second, federal funds can be borrowed by only those depository institutions that are required by the Monetary Control Act of 1980 to hold reserves with Federal Reserve Banks. -
Currency Board and Dollarization
Currency Board and Dollarization 1 Currency Board Only a few countries, mainly in Europe, had central banks before the twentieth century. Central banking did not became widespread in the Americas until the period between the First and Second World Wars, and did not become widespread in Africa and Asia until after the Second World War. There were certain arrangements of monetary authorities alternative to central banks. Among the other monetary systems that once were widespread were currency boards. After decades of decline, currency boards have enjoyed a revival of interest in the 1990s. 1.1 What Is a Currency Board? The main characteristics of a currency board are as follows. (1) Anchor Currency The domestic currency maintains a fixed exchange rate to an anchor currency (British pound sterling, U.S. dollar, Euro etc.), and the note-issuing is 100% backed by a foreign assets. A currency board is a variant of fixed exchange rate targeting in which the com- mitment to the fixed exchange rate is by design permanent and is particularly strong. A currency board maintains full, unlimited convertibility between its notes and coins and the anchor currency at a fixed rate of exchange. (2) Reserves A currency board’s reserves are equal to 100 percent or slightly more of its notes and coins in circulation, as set by law. As reserves, a currency board holds low-risk, interest-bearing bonds and other assets denominated in the anchor currency. (3) Monetary Policy By design, a currency board has no discretionary power in monetary policy; market forces alone determine the money supply.