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3 mai 2000
- doi: 10.3886/ICPSR01212.v1
- 1212
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central banks monetary policy policy makingSujets proches
Scientific research Science research Science--Research Funds FundingCiter ce document
Michael J. Dueker, « Measuring Monetary Policy Inertia in Target Fed Funds Rate Changes », Inter-university Consortium for Political and Social Research, ID : 10.3886/ICPSR01212.v1
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Recent research has grappled with an apparent paradox: Why would a central bank that is focused primarily on inflation control exhibit signs of inertia when making policy adjustments? In this article, the author argues that fully characterizing the policy inertia is a precondition toward resolving the apparent paradox. This research presents empirical estimates of adjustments to the target fed funds rate that take into account two facets of policy inertia: a partial-adjustment mechanism and thresholds for making discrete changes to the target fed funds rate. With a more complete picture of the policy inertia, subsequent research can investigate whether policy appears to display either too much or the right amount of inertia.