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The stance of US monetary policy: an alternative measure

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  • David Beckworth

Abstract

Knowing the stance of monetary policy is important for its successful implementation. Typically, observers look to the changes in the money supply and short-term interest rates to determine the stance of monetary policy. Sometimes, however, discerning the stance of monetary policy through these measures can be misleading. In this article, an alternative measure of the stance of US monetary policy is proposed and empirically examined, which appears to be a promising improvement over the standard metrics currently used.

Suggested Citation

  • David Beckworth, 2011. "The stance of US monetary policy: an alternative measure," Applied Economics Letters, Taylor & Francis Journals, vol. 18(2), pages 121-125.
    • Handle: RePEc:taf:apeclt:v:18:y:2011:i:2:p:121-125
    DOI: 10.1080/13504850903459727
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    References listed on IDEAS

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    1. Thomas Laubach & John C. Williams, 2003. "Measuring the Natural Rate of Interest," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 1063-1070, November.
    2. Milton Friedman & Anna J. Schwartz, 1963. "A Monetary History of the United States, 1867–1960," NBER Books, National Bureau of Economic Research, Inc, number frie63-1.
    3. Lastrapes, W. D., 1998. "International evidence on equity prices, interest rates and money," Journal of International Money and Finance, Elsevier, vol. 17(3), pages 377-406, June.
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    Cited by:

    1. Fernando J. Pérez Forero, 2017. "Measuring the Stance of Monetary Policy in a Time-Varying," Working Papers 102, Peruvian Economic Association.
    2. Ryan H. Murphy & Jiawen Chen, 2017. "A simple empirical investigation into the optimal size of the NGDP Target and Level targeting," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 41(2), pages 354-369, April.

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