Central Bank Independence

Benjamín García · Arsenios Skaperdas

This paper constructs a new measure of political pressure on the Federal Reserve from textual analysis of Fed Chairs' testimonies at Humphrey-Hawkins congressional hearings, and documents that the use …

Marvin Goodfriend

Classifying Federal Reserve crisis-era interventions into monetary policy, credit policy, and interest-on-reserves policy, Goodfriend argues that only "Treasuries only" monetary policy is fiscally …

François R. Velde · Marcelo Veracierto

Written on the eve of Argentina's 2001-02 currency-board collapse, this Chicago Fed policy piece examines Argentina's 1991-99 dollar peg as a test case for the costs and benefits of full …

Thomas Drechsel

This paper combines a hand-collected archival data set of over 800 personal interactions between U.S. Presidents and Federal Reserve officials from 1933 to 2016 with a narrative structural VAR to …

Robert J. Barro · David B. Gordon

This 1983 Journal of Monetary Economics paper by Robert Barro and David Gordon shows that a monetary authority acting with full discretion each period will generate more inflation on average than one …

Bruno Cavani · Samer F. Shousha

Textbook Mundell–Fleming logic says a weaker local currency should be expansionary through net exports, yet in emerging market economies (EMEs) a stronger US dollar has been consistently associated …

Thomas J. Sargent

This paper studies the abrupt endings of four post-World War I European hyperinflations -- in Austria, Hungary, Poland, and Germany -- arguing that each stopped suddenly and at a comparatively low …

Christopher A. Sims

Outlining the fiscal theory of the price level and its implications for monetary policy under inflationary and deflationary stress, Sims argues that the Maastricht Treaty's elaborate monetary …