Is There a Dead Spot? New Evidence on FOMC Decisions Before Elections

B-Tier
Journal: Journal of Money, Credit, and Banking
Year: 2007
Volume: 39
Issue: 6
Pages: 1411-1427

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

Using new data that chronicle the Fed's internal forecast of the output gap from 1973 to 1998, this paper tests for an electoral cycle in the decisions of the Federal Open Market Committee (FOMC). The paper provides evidence of a dead spot in the committee's decisions before presidential elections. For given values of these internal forecasts, the FOMC is less likely to decide to tighten monetary policy in the year preceding a presidential election than at other times.

Technical Details

RePEc Handle
repec:wly:jmoncb:v:39:y:2007:i:6:p:1411-1427
Journal Field
Macro
Author Count
1
Added to Database
2026-02-02