Transparent US monetary policy: theory and tests |
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| Authors: | Marc D Hayford A G Malliaris |
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| Institution: | 1. Department of Economics , Loyola University Chicago , 1 East Pearson Street, Chicago, Illinois 60611, USA mhayfor@luc.edu;3. Department of Economics , Loyola University Chicago , 1 East Pearson Street, Chicago, Illinois 60611, USA |
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| Abstract: | In 1994, the Federal Reserve System moved to a more transparent reporting of monetary policy. This article assesses the impact of monetary policy transparency on uncertainty about future monetary policy using T-bill rate forecast dispersions and ex post forecast errors from the Survey of Professional Forecasters as a proxy for monetary policy uncertainty. The empirical findings confirm that Federal Reserve transparency has reduced the uncertainty about future monetary policy. |
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