The Most Dangerous Idea in Federal Reserve History: Monetary Policy Doesn't Matter

S-Tier
Journal: American Economic Review
Year: 2013
Volume: 103
Issue: 3
Pages: 55-60

Authors (2)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Monetary policy-makers' beliefs about how the economy functions are a key determinant of the conduct of policy. That monetary policy has little impact under the prevailing circumstances is a belief which has resurfaced periodically over the Federal Reserve's 100-year history. In both the 1930s and the 1970s a belief in the ineffectiveness of monetary policy led to policy inaction and poor economic outcomes. For some of the recent period, the same view appears to have limited the policy response to prolonged high unemployment in the presence of low inflation.

Technical Details

RePEc Handle
repec:aea:aecrev:v:103:y:2013:i:3:p:55-60
Journal Field
General
Author Count
2
Added to Database
2026-01-29