IDEAS home Printed from https://ideas.repec.org/p/fip/fedbwp/96-11.html

Reserve banks, the discount rate recommendation, and FOMC policy

Author

Listed:
  • Geoffrey M. B. Tootell

Abstract

The boards of directors of the 12 District Reserve Banks are the rare private citizens who play a role in government decisionmaking. Although the nine business, labor, financial~ and community leaders on each local board do not directly set policy, they do recommend changes in the discount rate to the Board of Governors. On the surface their role in monetary policy deliberations is only advisory; however, their influence could, in fact, be substantially more significant if they actually affect the FOMC votes of their respective Reserve Bank presidents. This paper examines this more significant link to monetary policy by testing the relationship between the discount rate recommendation of the Reserve Bank?s board and the vote of that District?s Bank president at the FOMC. It is shown that the FOMC votes of Reserve Bank presidents are significantly correlated with their board of directors? current discount rate recommendation.

Suggested Citation

  • Geoffrey M. B. Tootell, 1996. "Reserve banks, the discount rate recommendation, and FOMC policy," Working Papers 96-11, Federal Reserve Bank of Boston.
    • Handle: RePEc:fip:fedbwp:96-11
    as

    Download full text from publisher

    File URL: http://www.bostonfed.org/economic/wp/wp1996/wp96_11.htm
    Download Restriction: no
    File URL: http://www.bostonfed.org/economic/wp/wp1996/wp96_11.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    More about this item

    Keywords

    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedbwp:96-11. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Spozio (email available below). General contact details of provider: https://edirc.repec.org/data/frbbous.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.