Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 1999 erstellt
Beschreibung:
This paper studies the credibility and transparency of monetary policy. We characterize each FOMC meeting as a decision to ease, maintain, or tighten monetary policy and model decisions with ordered probit reaction functions. Policy is credible if the estimated models are significant functions of variables commonly assumed to shape monetary policy. If these estimates accurately predict changes in policy, we consider policy to be transparent. We only use data that were publicly available at the time of each FOMC meeting. Results show some evidence of credibility. Policy was less transparent in the Greenspan sample than in the Volcker period