tag:blogger.com,1999:blog-8702840202604739302.post4791229799377856010..comments2024-03-28T03:38:53.734-07:00Comments on MacroMania: What is Clear and Not so Clear About Fed Policy (Part 2)David Andolfattohttp://www.blogger.com/profile/12138572028306561024noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-8702840202604739302.post-75725589458692802002010-11-04T12:31:39.299-07:002010-11-04T12:31:39.299-07:00Prof J: We have a number of experts here at the Fe...Prof J: We have a number of experts here at the Fed that can help you out. Email me, if you are interested in visiting us. <br /><br />I have not read Melter's piece. I am skeptical of his argument, but who knows...David Andolfattohttps://www.blogger.com/profile/12138572028306561024noreply@blogger.comtag:blogger.com,1999:blog-8702840202604739302.post-53946119514097763432010-11-04T12:20:34.849-07:002010-11-04T12:20:34.849-07:00David,
Thanks. I'm fleshing out a research pa...David,<br /><br />Thanks. I'm fleshing out a research paper (corporate finance) that is related to how (operationally) the Fed expands money supply. <br /><br />The papers I've been reading (Friedman and Kuttner have a nice review) seem to indicate that the target FF rate is effectuated through announcement effects rather than genuine reserve supply increases/decreases (liquidity effect). Any thoughts?<br /><br />Also, Meltzer has an op/ed in today's WSJ where we speculates that the Fed went to the PCE in the 1990s and has recently gone back to CPI because currently CPI will understate inflation relative to PCE.Prof Jhttps://www.blogger.com/profile/16539902592080231165noreply@blogger.comtag:blogger.com,1999:blog-8702840202604739302.post-54683603278530264082010-11-04T11:58:20.653-07:002010-11-04T11:58:20.653-07:00Prof J:
It is my understanding that the Fed is le...Prof J:<br /><br />It is my understanding that the Fed is legally prohibited from purchasing debt directly from the Treasury; it is done via primary dealers.<br /><br />I think the Fed looks at a variety of inflation measures, including CPI and core CPI. The Fed also monitors short and long term inflation expectations as reported, say, by the Survey of Professional forecasters.David Andolfattohttps://www.blogger.com/profile/12138572028306561024noreply@blogger.comtag:blogger.com,1999:blog-8702840202604739302.post-69734202250327335282010-11-03T15:09:34.160-07:002010-11-03T15:09:34.160-07:00David,
What's the measure of inflation that t...David,<br /><br />What's the measure of inflation that the Fed uses?<br /><br />Also, are open market operations basically still conducted as they were in the 1990s, by purchasing/selling Treasury securities from a small group of banks?Prof Jhttps://www.blogger.com/profile/16539902592080231165noreply@blogger.com