• Medientyp: E-Artikel
  • Titel: Does a Bias in FOMC Policy Directives Help Predict Intermeeting Policy Changes?
  • Beteiligte: Lapp, John S.; Pearce, Douglas K.
  • Erschienen: Ohio State University Press, 2000
  • Erschienen in: Journal of Money, Credit and Banking, 32 (2000) 3, Seite 435-441
  • Sprache: Englisch
  • ISSN: 0022-2879; 1538-4616
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  • Beschreibung: Since 1984 the FOMC has issued directives indicating a bias toward easing or tightening. This paper investigates the information content of these asymmetric directives for the likelihood of inter-meeting changes in policy during the Greenspan chairmanship. If policy is measured by the change in the average daily federal funds rate after a directive is issued, the results indicate that a bias predicts a significant change in the average funds rate. If policy is measured qualitatively by whether the target for the federal funds rate changed, a bias significantly affects the probability that the target will be changed.