Should The Fed Smooth Interest Rates? The Case of Seasonal Monetary Policy
Abstract
This paper examines the choice of monetary policy in response to seasonal fluctuations in the economy. It discusses the costs and benefits of smoothing interest rates over the seasons, which has been the Fed's policy since its founding in 1914, and presents simulations suggesting how the economy would behave under the alternative policy of stabilizing the money stock. Finally, it presents evidence that the smoothing of interest rates in 1914 changed the seasonal business cycle.Download Info
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3388.Length:
Date of creation: Oct 1991
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Handle: RePEc:nbr:nberwo:3388
Note: EFG ME ITI PE
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- Mankiw, N. Gregory & Miron, Jeffrey A., 1991. "Should the fed smooth interest rates? the case of seasonal monetary policy," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 34(1), pages 41-69, January.
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Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
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