Policy Objectives of the Federal Reserve System

Potts, Glenn T.; Luckett, Dudley G.

doi:10.2307/1883159

Cited by 49 publications

(15 citation statements)

References 3 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The procedure employed here draws heavily from papers by Potts and Luckett (1978) and Abrams, Froyen, and Waud (1980). For this reason, the following discussion is limited to a brief description of the components of these two papers that were combined to form the monetary policy reaction function shown below: Pt = Co + ClI"Pt + ¢2PPIT + c3Ut + c4lTt + et…”

Section: Methodsmentioning

confidence: 99%

“…Since this study covers thirty years time, a monetary aggregate or money market policy indicator would be inappropriate because Federal Reserve operating procedures may have changed during the sample period. For a further discussion of the classification technique and potential shortcomings of this method, see Luckett and Potts (1978). 4.…”

Section: The Variables Included In This Reaction Function Are Similarmentioning

confidence: 99%

See 1 more Smart Citation

Monetary policy and presidential elections: A nonpartisan political cycle

Hakes

1988

Public Choice

View full text Add to dashboard Cite

This paper develops a Federal Reserve reaction function which relates policy intentions to forecasts of policy objectives. Pre-and postpresidential election estimates of this reaction function for the post-Accord period of 1953-1984 suggest two conclusions:(1) the Federal Reserve reacts differently to economic conditions in the pre-and postelection biennia and (2) these differences in Fed behavior are not likely the result of partisan political influence, but rather the result of self-restraint by the Fed during preelection periods.

show abstract

Section: Methodsmentioning

confidence: 99%

Section: The Variables Included In This Reaction Function Are Similarmentioning

confidence: 99%

Monetary policy and presidential elections: A nonpartisan political cycle

Hakes

1988

Public Choice

View full text Add to dashboard Cite

show abstract

“…The first approach to identify the policymaker's function could be the so called narrative approach, in which official documents are interpreted to gauge the policymakers' choices. The narrative approach has been extensively used in the monetary policy literature; see Potts and Luckett (1978), Wallace and Warner (1985), Hakes (1988Hakes ( , 1990, Romer and Romer (1989). This approach has the drawback that there is substantial room for differences between the policymaker announcements and his true preferences.…”

Section: E Pluribus Unum? a Path Dependence Approachmentioning

confidence: 99%

E Pluribus Unum? Authorities' Design in Financial Supervision: Trends and Determinants

Masciandaro

2006

Open Econ Rev

View full text Add to dashboard Cite

This paper presents an analysis of recent trends and determinants in the architectures of financial supervision, focused on the authorities design. We propose a path dependence approach to study the single authority versus multi-authority dilemma, considering the level of financial supervision consolidation as the dependent variable. In particular, in a movement towards full consolidation in supervision, one can think of two sharp alternatives: a monopolist central bank or a pure single financial authority. Given that the degree of supervision consolidation seems to be inversely correlated with central bank involvement in supervision itself, the paper sheds light on the possible explanation of this trade-off. The trade off is tested using Probit techniques with a sample of 68 countries. Copyright Springer Science + Business Media, Inc. 2006financial supervision, single authority, central bank,

show abstract

“…Following Potts and Luckett (1978) and Hakes (1990), the monetary policy reaction function estimated can be speci-® ed asĨ…”

Section: I R E a C T I On Fu N C T I Onmentioning

confidence: 99%

“…The hypothesized signs of the coe cients are b 1 , b 2 < 0, b 3 > 0. Because this reaction has been widely employed in previous literature (Hakes, 1990, Potts andLuckett, 1978), only a brief description of Equation 1 follows. Rewriting Equation 1 as a matrix form yields I tˆxt ‡ " t .…”

Section: I R E a C T I On Fu N C T I Onmentioning

confidence: 99%