Working Paper No. 129

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چکیده

JEL classification E52 This paper examines the credibility of the Federal Reserve's monetary targets using survey data on money growth forecasts to measure market expectations. The paper provides two main results. First, there is strong evidence that the monetary targets were credible over the 1978 to 1993 sample period, although credibility fell in the post-1985 period. Second, both the federal government deficit and Federal Reserve reputation of controlling money growth within the target ranges have a significant impact on credibility.

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تاریخ انتشار 1998