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Politics and the Fed

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  • Meltzer, Allan H.

Abstract

In the standard policy model, a policymaker optimizes the welfare of a representative agent. In practice, policies are chosen in a political process by agents elected by voters. Drawing on evidence from my two-volume history of the Federal Reserve, the paper reports many examples of decisions influenced by political pressures. The history shows that the meaning of the independence of the Federal Reserve changed over time reflecting political influences.

Suggested Citation

  • Meltzer, Allan H., 2011. "Politics and the Fed," Journal of Monetary Economics, Elsevier, vol. 58(1), pages 39-48, January.
  • Handle: RePEc:eee:moneco:v:58:y:2011:i:1:p:39-48
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    Cited by:

    1. Michael Berlemann & Sören Enkelmann & Torben Kuhlenkasper, 2015. "Unraveling the Relationship Between Presidential Approval and the Economy: A Multidimensional Semiparametric Approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 30(3), pages 468-486, April.
    2. repec:kap:revaec:v:30:y:2017:i:4:d:10.1007_s11138-017-0375-2 is not listed on IDEAS
    3. Lakdawala, Aeimit, 2016. "Changes in Federal Reserve preferences," Journal of Economic Dynamics and Control, Elsevier, vol. 70(C), pages 124-143.
    4. Simon Bilo & Richard Wagner, 2015. "Neutral money: Historical fact or analytical artifact?," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 28(2), pages 139-150, June.

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