Abstract
The purpose of this chapter is to discuss the implementation of monetary policy, in particular the control of monetary aggregates. The discussion centers around two themes. First, monetary policy in retrospect, that is, the record of the Federal Reserve during the recent past in achieving its stated objectives regarding the time path of monetary aggregates; and second, monetary policy in prospect, that is, suggestions for operating guidelines that would enhance the Federal Reserve’s chances of meeting stated objectives regarding the time path of aggregates in the future.
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Notes
Statement before the Committee on Banking and Currency, U.S. House of Representatives, July 30, 1974. Reprinted in Arthur F. Burns (1978).
Statement before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, April 25, 1978. Reprinted in the Federal Reserve Bulletin, May 1978, p. 376.
Statement before the Committee on the Budget, U.S. House of Representatives, September 5, 1979. Reprinted in the Federal Reserve Bulletin, 1979, p. 740.
Federal Reserve statement, October 6, 1979 reported in the New York Times, Monday, October 8, 1979.
Table 5–2 and the discussion in this section are reprinted by permission from James J. Johannes and Robert H. Rasche, “Can the Reserves Approach to Monetary Control Really Work?” Journal of Money, Credit and Banking, 13 (August 1981), 298–313. Copyright 1981 by the Ohio State University Press. All rights reserved.
See Pierce and Thomson (1972) and the discussion in Chapter 1 for a distinction.
For additional descriptions of the new operating procedure, see “Monetary Policy and Open Market Operations in 1979,” Federal Reserve Bank of New York Quarterly Review (Summer 1979), 50–64, or Lang (1979).
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© 1987 Kluwer Academic Publishers, Boston
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Rasche, R.H., Johannes, J.M. (1987). Monetary Control: The Implementation Experience. In: Controlling the Growth of Monetary Aggregates. Rochester Studies in Economics and Policy Issues, vol 4. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-3275-3_5
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DOI: https://doi.org/10.1007/978-94-009-3275-3_5
Publisher Name: Springer, Dordrecht
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