Faculty Publications

Title

Do shifts in federal reserve policy regimes explain interest rate anomalies?

Document Type

Article

Journal/Book/Conference Title

Journal of Macroeconomics

Volume

17

Issue

2

First Page

227

Last Page

240

Abstract

In October 1979 and October 1982 the Federal Reserve announced changes in operating procedures. Recent research suggests that unusual interest rate movements began prior to October 1979 and extend beyond October 1982, and thus, the changes in operating procedures may not be the primary source of these interest rate anomalies. We unexpectedly find support for this conclusion. We defined regime shifts as changes in the Fed's respose errant money growth, and we find that the Fed's response to errant money growth is not correlated with the unusual interest rate movements during this period. © 1995.

Original Publication Date

1-1-1995

DOI of published version

10.1016/0164-0704(95)80098-0

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