Private Sector Influences on Monetary Policy in the United States |
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Authors: | CHARLES L WEISE |
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Institution: | Charles;L. Weiseis Associate Professor of Department of Economics, Gettysburg College, Gettysbury, PA 17325 (E-mail:). |
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Abstract: | I examine the extent to which the Federal Reserve's monetary policy actions are correlated with the expressed wishes of private sector lobbying groups. I update and extend work by Havrilesky (1990, 1993) regarding the effect of signals from the banking industry through the Federal Advisory Council (FAC). I also construct a new database containing statements from non-financial interest groups. I find that monetary policy actions are correlated with signals from non-financial groups before 1979 but not after, and are correlated with signals from the FAC after 1979 but not before. I also find that the Fed's policy stance more closely matches the preferred stance of the banking industry after 1979. |
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Keywords: | E5 E6 |
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