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Financial market efficiency and the effectiveness of monetary policy

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  • Michael Woodford

Abstract

Paper for a conference sponsored by the Federal Reserve Bank of New York entitled Financial Innovation and Monetary Transmission

Suggested Citation

  • Michael Woodford, 2002. "Financial market efficiency and the effectiveness of monetary policy," Economic Policy Review, Federal Reserve Bank of New York, vol. 8(May), pages 85-94.
    • Handle: RePEc:fip:fednep:y:2002:i:may:p:85-94:n:v.8no.1
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    File URL: https://www.newyorkfed.org/medialibrary/media/research/epr/02v08n1/0205wood.pdf
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    References listed on IDEAS

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    1. Spindt, Paul A. & Hoffmeister, J. Ronald, 1988. "The Micromechanics of the Federal Funds Market: Implications for Day-of-the-Week Effects in Funds Rate Variability," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 23(4), pages 401-416, December.
    2. Chari, V.V. & Kehoe, Patrick J., 1999. "Optimal fiscal and monetary policy," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 26, pages 1671-1745, Elsevier.
    3. James A. Clouse & Douglas W. Elmendorf, 1997. "Declining required reserves and the volatility of the federal funds rate," Finance and Economics Discussion Series 1997-30, Board of Governors of the Federal Reserve System (U.S.).
    4. Hamilton, James D, 1996. "The Daily Market for Federal Funds," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 26-56, February.
    5. Furfine, Craig H., 2000. "Interbank payments and the daily federal funds rate," Journal of Monetary Economics, Elsevier, vol. 46(2), pages 535-553, October.
    6. Michael Woodford, 2001. "Monetary policy in the information economy," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 297-370.
    7. John B. Taylor, 2001. "Expectations, open market operations, and changes in the federal funds rate," Review, Federal Reserve Bank of St. Louis, vol. 83(Jul), pages 33-58.
    8. Robert E. Hall, 2005. "Controlling the Price Level," American Journal of Economics and Sociology, Wiley Blackwell, vol. 64(1), pages 93-112, January.
    9. John B. Taylor, 1999. "Monetary Policy Rules," NBER Books, National Bureau of Economic Research, Inc, number tayl99-1, March.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. repec:hal:spmain:info:hdl:2441/5cj1rrk8sb9f791t15lfl9ne27 is not listed on IDEAS
    2. Bennett T. McCallum, 2003. "Monetary Policy in Economies with Little or No Money," NBER Working Papers 9838, National Bureau of Economic Research, Inc.
    3. Philip Arestis & Alexander Mihailov, 2011. "Classifying Monetary Economics: Fields And Methods From Past To Future," Journal of Economic Surveys, Wiley Blackwell, vol. 25(4), pages 769-800, September.
    4. Marinescu, Ion-Iulian & Horobet, Alexandra & Lupu, Radu, 2018. "Dichotomous stock market reaction to episodes of rules and discretion in the US monetary policy," Economic Modelling, Elsevier, vol. 70(C), pages 56-66.
    5. repec:hal:spmain:info:hdl:2441/2nsjnaarln8gib7fq4nl3ijunb is not listed on IDEAS
    6. Ion-Iulian MARINESCU & Alexandra HOROBET, 2015. "Rules and Discretion in Monetary Policy: Is the Response of the Stock Market Rational?," Expert Journal of Economics, Sprint Investify, vol. 3(1), pages 50-62.
    7. Jean-Luc Gaffard, 2018. "Monetary theory and policy : the debate revisited," Working Papers hal-03475425, HAL.
    8. Jean-Luc Gaffard, 2014. "Crise de la théorie et crise de la politique économique. Des modèles d'équilibre général stochastique aux modèles de dynamique hors de l'équilibre," Revue économique, Presses de Sciences-Po, vol. 65(1), pages 71-96.
    9. Marzo, Massimiliano & Zagaglia, Paolo, 2008. "Determinacy of interest rate rules with bond transaction services in a cashless economy," Bank of Finland Research Discussion Papers 24/2008, Bank of Finland.
    10. Hasan Cömert, 2013. "Central Banks and Financial Markets," Books, Edward Elgar Publishing, number 14867.
    11. Aleksandra Maslowska-Jokinen & Anna MatysekJedrych, 2016. "Post-Crisis Regulatory and Supervisory Arrangements – The New ‘Old’ Central Banking," BAFFI CAREFIN Working Papers 1632, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    12. Hasan Cömert, 2012. "Decoupling between the Federal Funds Rate and Long-term Interest Rates: Decreasing Effectiveness of Monetary Policy in the U.S," Working Papers wp295, Political Economy Research Institute, University of Massachusetts at Amherst.
    13. repec:hal:spmain:info:hdl:2441/c6t1fl36hv9s7q89j8m3l00al is not listed on IDEAS
    14. Paul D. Mueller & Joshua Wojnilower, 2016. "The Federal Reserve's Floor System: Immediate Gain for Remote Pain?," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 31(Summer 20), pages 15-40.
    15. Nasreen Nawaz, 2021. "Efficiency on the dynamic adjustment path in a financial market," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 45(1), pages 49-74, January.
    16. C. Sardoni, 2006. "Why Central Banks (and Money) Rule the Roost," Economics Working Paper Archive wp_457, Levy Economics Institute.
    17. Jean-Luc Gaffard, 2012. "Crise de la théorie et crise de la politique économique : des modèles d'équilibre général stochastique aux modèles de dynamique hors de l'équilibre," SciencePo Working papers Main hal-01070291, HAL.
    18. Jean-Luc Gaffard, 2018. "Monetary theory and policy : the debate revisited," SciencePo Working papers Main hal-03475425, HAL.
    19. repec:zbw:bofrdp:2008_024 is not listed on IDEAS
    20. repec:spo:wpecon:info:hdl:2441/c6t1fl36hv9s7q89j8m3l00al is not listed on IDEAS
    21. Angelo Ranaldo & Benedikt Ballensiefen & Hannah Winterberg, 2020. "Monetary policy disconnect," Working Papers on Finance 2003, University of St. Gallen, School of Finance.
    22. Marzo, Massimiliano & Zagaglia, Paolo, 2008. "Determinacy of Interest Rate Rules with Bond Transaction Services in a Cashless Economy," Research Papers in Economics 2008:7, Stockholm University, Department of Economics.
    23. repec:hal:wpspec:info:hdl:2441/c6t1fl36hv9s7q89j8m3l00al is not listed on IDEAS

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    Monetary policy; Financial markets;

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