+612 9045 4394
 
CHECKOUT
Committee Decisions on Monetary Policy : Evidence from Historical Records of the Federal Open Market Committee - Henry W. Chappell, Jr.

Committee Decisions on Monetary Policy

Evidence from Historical Records of the Federal Open Market Committee

Hardcover

Published: 3rd January 2005
For Ages: 18+ years old
Ships: 3 to 4 business days
3 to 4 business days
RRP $24.99
$24.50

In many countries, monetary policy decisions are made by committees. In the United States, these decisions are made by the Federal Reserve's Federal Open Market Committee (FOMC), which consists of the seven members of the Board of Governors and the presidents of the twelve district banks. This book examines the process by which the preferences of the FOMC's individual members are translated into collective policy choices. This focus on the aggregation of individual preferences into group decisions is unique and provides an important perspective on the evolution of monetary policy choices.To study decision making by the FOMC, the authors have used both formal voting records and detailed transcripts and summaries of deliberations contained in the committee's Memoranda of Discussion and FOMC Transcripts. The latter sources have been used to construct data sets describing individual committee members' policy preferences for the 1970-1978 and 1987-1996 periods when the FOMC was chaired by Arthur Burns and Alan Greenspan, respectively. These data are used to estimate monetary policy reaction functions for individual Committee members and to explore the role of majoritarian pressures, pressures for consensus, and the power of the chairman in collective decision making. The rich anecdotal evidence found in the Memoranda of Discussion and FOMC Transcripts inspires the narrative approach taken in two chapters, on the influence of political pressure on FOMC deliberations and on the relevance of the time inconsistency problem for the rise of inflation in the 1970s.

"Replacing speculation and opinion with powerful empirical results, this book cuts to the heart of the policy making process. It should be required reading for anyone wishing to understand the Federal Open Market Committee and the way in which monetary policy is made." - W. Lee Hoskins, former president, Federal Reserve Bank of Cleveland"

Tables and Figurep. xi
Prefacep. xiii
Introductionp. 1
Institutional Backgroundp. 7
Analytical Backgroundp. 17
A Long History of FOMC Voting Behavior: Individual Reaction Functions and Political Influence on the Monetary Policy Decision Processp. 29
Data from the Memoranda of Discussion and FOMC Transcriptsp. 57
Estimating Reaction Functions for Individual FOMC Membersp. 71
Majority Rule, Consensus Building, and the Power of the Chairman: Arthur Burns and the FOMCp. 97
FOMC Decisions during the Greenspan Yearsp. 119
Political Influences on Monetary Policy Decision Making: Evidence from the Memoranda and the Transcriptsp. 139
Time Inconsistency and the Great Inflation: Evidence from the Memoranda and the Transcriptsp. 161
Conclusionsp. 183
Voting Datap. 193
Estimation of Individual Reaction Functions Using Dissent Voting Datap. 197
Estimation of Individual Reaction Functions Using Data from the Memoranda and the Transcriptsp. 199
Burns Era Preference Profiles by Meetingp. 205
Greenspan Era Preference Profiles by Meetingp. 257
Referencesp. 297
Indexp. 305
Table of Contents provided by Publisher. All Rights Reserved.

ISBN: 9780262033305
ISBN-10: 0262033305
Series: The MIT Press
Audience: Professional
For Ages: 18+ years old
Format: Hardcover
Language: English
Number Of Pages: 336
Published: 3rd January 2005
Publisher: MIT Press Ltd
Country of Publication: US
Dimensions (cm): 22.9 x 15.2  x 2.5
Weight (kg): 0.57