SOURCE: Federal Reserve Bank of Richmond

Federal Reserve Bank of Richmond

August 23, 2010 09:25 ET

Richmond Fed's Economic Quarterly Examines Monetary Policy During Greenspan Era

RICHMOND, VA--(Marketwire - August 23, 2010) -  In the new issue of Economic Quarterly Yash Mehra and Bansi Sawhney examine whether monetary policy actions during the Greenspan era, in particular between 2002 and 2006, can be described by a "Taylor rule," a guide to monetary policy advocated by many economists. Some have argued that the federal funds rate during this period was kept too low for too long to be consistent with the Taylor rule. But if one estimates a Taylor rule using real-time data and employs a time-varying measure of core inflation, Mehra and Sawhney conclude that the estimated Taylor rule accurately describes policy during the Greenspan era.

You can find the full text of this article and others in the latest issue of Economic Quarterly at:

Also in the Second Quarter 2010 issue:

  • Monetary Policy with Interest on Reserves by Andreas Hornstein
  • Are Wages Rigid Over the Business Cycle? by Marianna Kudlyak
  • Changes in Monetary Policy and the Variation in Interest Rate Changes Across Credit Markets by Devin Reilly and Pierre-Daniel G. Sarte

The Economic Quarterly is a free publication containing economic analysis pertinent to Federal Reserve monetary and banking policy. For free copies or more information, contact the Federal Reserve Bank of Richmond's Research Department--Publications at 800.322.0565.

The Federal Reserve Bank of Richmond is one of 12 District Reserve Banks that together with the Board of Governors in Washington, D.C., make up the Federal Reserve System. The Richmond Fed serves the Fifth Federal Reserve District, which encompasses the District of Columbia, Maryland, North Carolina, South Carolina, Virginia, and most of West Virginia.

Contact Information

  • Contacts:
    John Weinberg
    Director of Research
    Federal Reserve Bank of Richmond

    Amanda Kramer
    Managing Editor
    Federal Reserve Bank of Richmond Economic Quarterly
    Email Contact