search query: @author Hardouvelis, G. A. / total: 5
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| Author: | Hardouvelis, G. A. Barnhardt, S. W. |
| Title: | The evolution of federal reserve credibility: 1978-1984. |
| Journal: | Review of Economics and Statistics
1989 : AUG, VOL. 71:3, p. 385-393 |
| Index terms: | COMMODITY MARKETS PRICES MONETARY POLICY INFLATION |
| Language: | eng |
| Abstract: | A random coefficients Kalman filter model of the response of commodity prices to weekly M1 announcements indicates a gradual evolution in the credibility of the Federal Reserve as an inflation fighter. The October 1979 announcement of a change in monetary policy aimed at reducing inflation did not result in an immediate increase in credibility, and the October 1982 announcement of a policy reversal did not diminish credibility. Credibility does vary with the underlying rate of inflation, which shows that markets pay attention to policy results not simply policy announcements. |
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