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How the Fed affects the economy: a look at systematic monetary policy

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  • Michael Dotsey

Abstract

Until recently, when assessing the economic effects of monetary policy, economists have emphasized the role of unanticipated changes in policy. But are these policy shocks likely to be the most important influence on the economy? Mike Dotsey believes not. It seems more likely that the Fed's systematic behavior plays a bigger part in what happens in the U.S. economy. In \\"How the Fed Affects the Economy: A Look at Systematic Monetary Policy,\\" Dotsey explains the ways in which systematic policy influences economic activity

Suggested Citation

  • Michael Dotsey, 2004. "How the Fed affects the economy: a look at systematic monetary policy," Business Review, Federal Reserve Bank of Philadelphia, issue Q1, pages 6-15.
    • Handle: RePEc:fip:fedpbr:y:2004:i:q1:p:6-15
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    File URL: https://www.philadelphiafed.org/-/media/frbp/assets/economy/articles/business-review/2004/q1/brq104md.pdf
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    References listed on IDEAS

    as
    1. Mark Bils & Peter J. Klenow, 2004. "Some Evidence on the Importance of Sticky Prices," Journal of Political Economy, University of Chicago Press, vol. 112(5), pages 947-985, October.
    2. Satyajit Chatterjee, 1995. "Productivity growth and the American business cycle," Business Review, Federal Reserve Bank of Philadelphia, issue Sep, pages 13-22.
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    Cited by:

    1. Michael Dotsey, 2016. "Monetary policy and the new normal," Economic Insights, Federal Reserve Bank of Philadelphia, vol. 1(1), pages 1-4, January.

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    Monetary policy;

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