Federal Reserve Bank of St. Louis

About: Federal Reserve Bank of St. Louis is a other organization based out in St Louis, Missouri, United States. It is known for research contribution in the topics: Monetary policy & Inflation. The organization has 203 authors who have published 1650 publications receiving 46084 citations.

Responses of International Central Banks to the COVID-19 Crisis

Abstract: This article reviews and explains the recent policy reactions of the Federal Reserve, the European Central Bank, the Bank of England, and the Bank of Japan to the financial and macroeconomic turmoil caused by the COVID-19 pandemic The financial and monetary policy actions of major central banks in the most recent crisis have, by some metrics, surpassed their responses to the Global Financial Crisis of 2007-09 in both swiftness and scope

The Perils of Globalization: Offshoring and Economic Insecurity of the American Worker

Abstract: According to polls from the 2006 congressional elections, globalization and economic insecurity were the primary concerns of many voters. These Americans apparently believe that they have fallen victim to liberal trade polices and that inexorable trends in globalization are destroying the American Dream. In this analysis, we use time series cross-section data from the General Social Survey (GSS) to examine the links among offshoring, labor market volatility, and the demand for social insurance. Unique among the GSS literature, our analysis includes a pseudo-panel model which permits including auxiliary state and regional macroeconomic information.

An Overhaul of Doctrine: The Underpinning of UK Inflation Targeting*

Abstract: This paper argues that the inflation targeting regime prevailing in the United Kingdom is not the result of a change in policymaker objectives By conducting an analysis of UK policymakers that parallels Romer and Romer’s (2004) study of Federal Reserve Chairmen, I demonstrate that policymaker objectives have been essentially unchanged over the past five decades Instead, the crucial underpinning of UK inflation targeting has been an overhaul of doctrine—a changed view of the transmission mechanism This overhaul can be understood in terms of changes in policymakers’ views on the values of a few key parameters in their specifications of the economy’s IS and Phillips curves Specifically, the changed views pertain to the issues of whether interest rates enter the IS equation, and the extent of policymaker influence on those rates; whether the level of the output gap appears in the Phillips curve when the gap is negative; and whether a speedlimit term matters for inflation dynamics Contrary to conventional wisdom, changing views on the expected-inflation term in the Phillips curve do not play a role

A note on the expectations hypothesis at the founding of the Fed

Abstract: One of the most influential tests of the expectations hypothesis is Mankiw and Miron [Q. J. Econ. 101 (1986) 211], who found that the spread between the long-term and short-term rates provided predictive power for the short-term rate before the Fed's founding but not after. They suggested that the failure of the expectations hypothesis after the Fed's founding was due to the Fed's practice of smoothing short-term interest rates. We show that their finding that the expectations hypothesis fares better prior to the Fed's founding is due to the fact that the test they employ tends to generate results that are more favorable to the expectations hypothesis during periods when there is extreme volatility in the short-term rate.