Monetary policy report to the Congress
AbstractThe year 2004 was marked by continued expansion in economic activity and appreciable gains in employment. With fiscal policy stimulative, monetary policy accommodative, and financial conditions favorable, household spending remained buoyant and businesses increased investment in capital equipment and inventories, despite the restraint imposed by sizable increases in oil prices. Labor market conditions improved significantly, albeit at an uneven pace, and productivity rose notably further. Consumer price inflation moved higher with the surge in energy prices, but core consumer price inflation (that is, excluding food and energy) remained well contained, and measures of expected inflation over longer horizons held steady or edged lower. ; Although economic activity had increased substantially in 2003, the expansion nevertheless appeared somewhat tentative as 2004 opened, in large measure because businesses still seemed to be reluctant to boost hiring. Over the course of the spring, however, it became clearer that the expansion was solidifying. With slack in labor and product markets somewhat diminished, the Federal Open Market Committee at its June meeting began to reduce the substantial degree of monetary accommodation that was in place. The gradual removal of monetary policy stimulus continued in the second half of the year as the economy expanded at a healthy clip on balance. The fundamental factors underlying the continued strength of the economy last year should carry forward into 2005 and 2006, promoting both healthy expansion of activity and low inflation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Board of Governors of the Federal Reserve System (U.S.) in its journal Federal Reserve Bulletin.
Volume (Year): (2005)
Issue (Month): Spr ()
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Honkapohja, Seppo & Mitra, Kaushik, 2003.
"Performance of Inflation Targeting Based on Constant Interest Rate Projections,"
CEPR Discussion Papers
4126, C.E.P.R. Discussion Papers.
- Honkapohja, Seppo & Mitra, Kaushik, 2005. "Performance of inflation targeting based on constant interest rate projections," Journal of Economic Dynamics and Control, Elsevier, vol. 29(11), pages 1867-1892, November.
- Honkapohja, Seppo & Mitra, Kaushik, 2003. "Performance of inflation targeting based on constant interest rate projections," CFS Working Paper Series 2003/39, Center for Financial Studies (CFS).
- Kaushik Mitra & Seppo Honkapohja, 2004. "Performance of Inflation Targeting Based on constant Interest Rate Projections," Computing in Economics and Finance 2004 130, Society for Computational Economics.
- Seppo Honkapohja & Kaushik Mitra, 2004. " Performance of Inflation Targeting Based on Constant Interest Rate Projections," CDMA Conference Paper Series 0406, Centre for Dynamic Macroeconomic Analysis.
- Kaushik Mitra & Seppo Honkapohja, 2004. "Performance of Inflation Targeting Based On Constant Interest Rate Projections," Royal Holloway, University of London: Discussion Papers in Economics 04/15, Department of Economics, Royal Holloway University of London, revised Jul 2004.
- Pippenger, John, 2012. "The Fragility of Overshooting," University of California at Santa Barbara, Economics Working Paper Series qt4rd5j98c, Department of Economics, UC Santa Barbara.
- Bertaut, Carol & DeMarco, Laurie Pounder & Kamin, Steven & Tryon, Ralph, 2012. "ABS inflows to the United States and the global financial crisis," Journal of International Economics, Elsevier, vol. 88(2), pages 219-234.
- Catte, Pietro & Cova, Pietro & Pagano, Patrizio & Visco, Ignazio, 2011.
"The role of macroeconomic policies in the global crisis,"
Journal of Policy Modeling,
Elsevier, vol. 33(6), pages 787-803.
- Pietro Catte & Pietro Cova & Patrizio Pagano & Ignazio Visco, 2010. "The role of macroeconomic policies in the global crisis," Questioni di Economia e Finanza (Occasional Papers) 69, Bank of Italy, Economic Research and International Relations Area.
- Ather Maqsood Ahmed & Wasim Shahid Malik, 2011. "The Economics of Inflation, Issues in the Design of Monetary Policy Rule, and Monetary Policy Reaction Function in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 16(Special E), pages 213-232, September.
- Pippenger, John, 2009. "Dornbusch Was Wrong: There is no Convincing Evidence of Overshooting, Delayed or Otherwise," University of California at Santa Barbara, Economics Working Paper Series qt78k0b5zw, Department of Economics, UC Santa Barbara.
- Rodriguez, Adolfo & Trucharte, Carlos, 2007. "Loss coverage and stress testing mortgage portfolios: A non-parametric approach," Journal of Financial Stability, Elsevier, vol. 3(4), pages 342-367, December.
- Pippenger, John, 2008. "Freely Floating Exchange Rates Do Not Systematically Overshoot," University of California at Santa Barbara, Economics Working Paper Series qt97m8z6hw, Department of Economics, UC Santa Barbara.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kris Vajs) The email address of this maintainer does not seem to be valid anymore. Please ask Kris Vajs to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.