U.S. monetary policy in an integrating world: 1960 to 2000
This article examines the impact of global developments on the practice of U.S. monetary policy, broadly defined to include regulatory and lender-of-last-resort functions as well as open market, discount, and intervention activity, over the past forty years. It is part of a paper presented at the forty-fifth economic conference of the Federal Reserve Bank of Boston. The authors briefly review a few familiar facts establishing the increased openness of the U.S. economy, and go on to explore episodes when external events beyond those included in the domestic outlook-events like significant exchange rate shifts-appear to have influenced monetary policy decisions. ; They find that the view that U.S. monetary policy is mostly or even entirely domestically oriented is largely incorrect, in at least three different respects. Greater engagement with the rest of the world in both trade and financial transactions has led the U.S. economy to be more directly affected by overseas developments than it was three or four decades ago. Moreover, a perusal of FOMC records reveals extensive references to international developments in discussions of the future direction of monetary policy. And third, external competitive pressures have facilitated substantial changes in the structure of the U.S. financial system. This interplay between financial innovation and regulatory change has in turn affected how monetary policy works.
Volume (Year): (2001)
Issue (Month): ()
|Contact details of provider:|| Postal: 600 Atlantic Avenue, Boston, Massachusetts 02210|
Web page: http://www.bos.frb.org/
More information through EDIRC
|Order Information:|| Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jane Sneddon Little & Giovanni P. Olivei, 1999.
"Rethinking the International Monetary System: an overview,"
New England Economic Review,
Federal Reserve Bank of Boston, issue Nov, pages 3-24.
- Jane Sneddon Little & Giovanni P. Olivei, 1999. "Rethinking the International Monetary System: an overview," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 43(Jun), pages 1-31.
- Richard N. Cooper, 1999. "Exchange rate choices," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 43(Jun), pages 99-136.
- Athanasoulis, Stefano G. & van Wincoop, Eric, 2000.
"Growth uncertainty and risksharing,"
Journal of Monetary Economics,
Elsevier, vol. 45(3), pages 477-505, June.
- Richard N. Cooper, 1999. "Exchange Rate Choices," Harvard Institute of Economic Research Working Papers 1877, Harvard - Institute of Economic Research.
- William R. Cline, 1995. "International Debt Reexamined," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 46, January.
- Humpage, Owen F, 1999.
"U.S. Intervention: Assessing the Probability of Success,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 31(4), pages 731-47, November.
- Owen F. Humpage, 1996. "U.S. intervention: assessing the probability of success," Working Paper 9608, Federal Reserve Bank of Cleveland.
- Kathryn M. Dominguez and Jeffrey A. Frankel., 1992.
"Does Foreign Exchange Intervention Matter? Disentangling the Portfolio and Expectations Effects,"
Center for International and Development Economics Research (CIDER) Working Papers
C92-001, University of California at Berkeley.
- Dominguez, Kathryn M. & Frankel, Jeffrey A., 1992. "Does Foreign Exchange Intervention Matter? Disentangling the Portfolio and Expectations Effects," Center for International and Development Economics Research (CIDER) Working Papers 233167, University of California-Berkeley, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:fip:fedbne:y:2001:p:33-56:n:3. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catherine Spozio)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.