ST. LOUIS — There's usually a long lag between the time new ideas regarding monetary policy gain acceptance in academic circles and the time they're integrated into the policymaking process.
With that in mind, scholars and policymakers convened in St. Louis last fall to look at the practical implications of recent research in general equilibrium modeling for "Frontiers in Monetary Policy Research," the Federal Reserve Bank of St. Louis' 31st annual economic policy conference.
"One purpose of our annual conferences is to shorten the lag by supporting research aimed directly at issues policymakers care about," said William T. Gavin, vice president and economist at the St. Louis Fed, and the conference coordinator.
The July/August issue of Review, the St. Louis Fed's bimonthly publication of economic and business issues, features papers from the conference. The publication is also available on the Bank's web site: www.stlouisfed.org.
"Three of the six papers focus on the long-term bond market," said Gavin. "Bond markets often play the role of the 'canary in the mineshaft,' providing early warning about shifts in expectations of monetary policy. The longer-term interest rates are also seen as more important for aggregate demand, especially for investment. Because the Fed operates with a target for the interest rate on overnight lending in the market for federal funds, it is natural for us to want to know more about how monetary policy affects the term structure of interest rates and how expectations about monetary policy are revealed in market pricing."
The titles and authors of the papers are:
Commentaries are provided by:
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.
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