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Third Quarter 2014

In This Edition

  • An International Perspective on the Recent Behavior of Inflation

    Several commentators have been concerned about the possibility that the euro area may be experiencing disinflation with the risk of deflation. However, the euro area is not the only economy navigating the risky waters of low inflation.

  • Liquidity: Meaning, Measurement, Management

    This article is based on the author's Homer Jones Memorial Lecture delivered at the Federal Reserve Bank of St. Louis, April 2, 2014.

  • Making Sense of Dissents: A History of FOMC Dissents

    This article presents a record of dissents on Federal Open Market Committee (FOMC) monetary policy votes from the Committee's inception in its modern form in 1936 through 2013. Dissents were rare during the Committee's first 20 years but began to increase in the late 1950s.

  • The Effects of Terrorism on Trade: A Factor Supply Approach

    The conventional view of terrorism is that it raises risks and, as a result, reduces trade. The authors use a factor supply approach to show that this hypothesis is not necessarily correct.

  • When and How To Exit Quantitative Easing?

    The essence of quantitative easing (QE) is reducing the cost of private borrowing through large-scale purchases of privately issued debt instead of public debt (Bernanke, 2009). Considering the economy has drastically recovered, it is time to consider how exiting from these private asset purchases will affect the economy.