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Do federal reserve bank presidents have a regional bias?

Listed author(s):
  • Jung, Alexander
  • Latsos, Sophia

This paper examines whether the monetary policy deliberations of the FOMC have been influenced by regional considerations. We explain individual interest rate preferences by district, and use real-time data to estimate Taylor-type rules (sample 1990 to 2008). In line with the literature, this paper confirms that regional variables are explanatory factors of the interest rate preferences of most Reserve Bank Presidents. A new finding is that only few Reserve Bank Presidents display a regional bias in their interest rate preferences. Given their nature and size, these biases did not impede on the Fed's capacity to set interest rates with a nationwide focus.

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File URL: http://www.sciencedirect.com/science/article/pii/S0176268015000634
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Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 40 (2015)
Issue (Month): PA ()
Pages: 173-183

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Handle: RePEc:eee:poleco:v:40:y:2015:i:pa:p:173-183
DOI: 10.1016/j.ejpoleco.2015.06.004
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505544

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