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Which comes first: inflation or the FOMC's funds rate target?

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  • Daniel L. Thornton

Abstract

Must the FOMC increase its target before inflation, or will inflation increase and cause the FOMC to increase its target?

Suggested Citation

  • Daniel L. Thornton, 2010. "Which comes first: inflation or the FOMC's funds rate target?," Economic Synopses, Federal Reserve Bank of St. Louis.
    • Handle: RePEc:fip:fedles:y:2010:n:25
    as

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    File URL: http://research.stlouisfed.org/publications/es/10/ES1025.pdf
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    References listed on IDEAS

    as
    1. Daniel L. Thornton, 2007. "The lower and upper bounds of the Federal Open Market Committee's long-run inflation objective," Review, Federal Reserve Bank of St. Louis, vol. 89(May), pages 183-194.
    2. James B. Bullard, 2013. "Seven Faces of \\"The Peril\\"," Review, Federal Reserve Bank of St. Louis, issue Nov, pages 613-628.
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