What does the Fed’s language about 2013 mean? A rules-based interpretation

Olivier Coibion, Yuriy Gorodnichenko, 21 October 2011



In August 2011, members of the Federal Reserve’s Federal Open Market Committee (FOMC) reaffirmed their policy stance of maintaining the federal funds rate in a narrow range slightly above zero. But in an unprecedented step, they also added new language to their public release asserting that their current expectations of macroeconomic conditions would warrant “exceptionally low

Topics: Monetary policy
Tags: central bank communication, Federal Reserve, monetary policy

Long-run inflation expectations anchored more firmly in the euro area than in the United States

, Benjamin K. Johannsen, Andrew Levin , 24 October 2007

The United States and the euro area are economies of comparable size and openness; furthermore both the Federal Reserve and the European Central Bank (ECB) have a legal mandate to maintain price stability.

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URL: http://www.cepr.org/pubs/new-dps/dplist.asp?dpno=6536.asp
Topics: Monetary policy
Tags: central bank communication, ECB, euro-area inflation, inflation compensation

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