ST. LOUIS — A special issue of Review, the Federal Reserve Bank of St. Louis' bimonthly publication of economic and business issues, features papers presented last fall on policymaking after Oct. 6, 1979, when then-Fed chairman Paul Volcker announced that the Federal Reserve's Open Market Desk would trade Treasury securities to achieve weekly targets for a reserve quantity rather than the fed funds rate.
In their editorial introduction, economists Athanasios Orphanides and Daniel L. Thornton noted that the Fed's actions that day "marked the beginning of the end of inflationary malaise that permeated the economy at the time. Starting with its policy actions that Saturday afternoon, the Federal Reserve reaffirmed its responsibility to restore and maintain an environment of price stability in the economy, thereby restoring confidence and setting the stage for a period of lasting economic prosperity. This prosperity has been interrupted only by two mild and shallow recessions over the past two decades."
The titles and authors of the papers are:
Authors offering commentaries are: Christina D. Romer, a professor of economics at the University of California, Berkeley; Stephen H. Axilrod, a global macroeconomics consultant and former staff director for monetary affairs and financial policy at the Board of Governors; Laurence M. Ball, a professor at The Johns Hopkins University; Robert P. Black, former president of the Federal Reserve Bank of Richmond; Philip E. Coldwell, a former member of the Board of Governors; Joseph R. Coyne, a former assistant to the Board of Governors; and Charles Freedman, a former deputy governor at the Bank of Canada and currently scholar in residence at the Department of Economics, Carleton University, Ottawa.
Review is also available on the Bank's web site : www.stlouisfed.org.
With branches in Little Rock, Louisville and Memphis, the Federal Reserve Bank of St. Louis serves the Eighth Federal Reserve District, which includes all of Arkansas, eastern Missouri, southern Indiana, southern Illinois, western Kentucky, western Tennessee and northern Mississippi. The St. Louis Fed is one of 12 regional Reserve banks that, along with the Board of Governors in Washington, D.C., comprise the Federal Reserve System. As the nation's central bank, the Federal Reserve System formulates U.S. monetary policy, regulates state-chartered member banks and bank holding companies, and provides payment services to financial institutions and the U.S. government.