The Depoliticization of Monetary Policy |
| |
Authors: | Tempelman Jerry H |
| |
Institution: | (1) High-Yield Portfolio, Intrepid Capital Management, New York, NY 10023, USA |
| |
Abstract: | In the past thirty years, it has been claimed that Republicans tend to favor relatively restrictive monetary policy while
Democrats favor relatively accommodative monetary policy. Another claim is that, regardless of which political party is in
power, monetary policy tends to be relatively restrictive during the first two years of an administration and relatively accommodative
during its final two years. The present paper finds an absence of empirical evidence supporting either claim by restricting
the sample period to the past quarter century (1982–2006). The depoliticization of monetary policy decisions probably reflects,
among other factors, both the post-1970s new-Keynesian consensus in macroeconomic theory and the realization of political
independence of the Federal Reserve System during the Volcker-Greenspan years.
Editor’s note: After this article was submitted and accepted for publication by Business Economics, Mr. Tempelman took a position with the Federal Reserve Bank of New York. The views expressed are strictly those of the author
and do not necessarily reflect the position of the Federal Reserve Bank of New York or the Federal Reserve System. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|