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Private Sector Influences on Monetary Policy in the United States
Author(s) -
WEISE CHARLES L.
Publication year - 2008
Publication title -
journal of money, credit and banking
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.763
H-Index - 108
eISSN - 1538-4616
pISSN - 0022-2879
DOI - 10.1111/j.1538-4616.2008.00121.x
Subject(s) - monetary policy , private sector , construct (python library) , work (physics) , economics , financial services , banking industry , financial sector , business , finance , monetary economics , economic growth , mechanical engineering , engineering , computer science , programming language
I examine the extent to which the Federal Reserve's monetary policy actions are correlated with the expressed wishes of private sector lobbying groups. I update and extend work by Havrilesky (1990, 1993) regarding the effect of signals from the banking industry through the Federal Advisory Council (FAC). I also construct a new database containing statements from non‐financial interest groups. I find that monetary policy actions are correlated with signals from non‐financial groups before 1979 but not after, and are correlated with signals from the FAC after 1979 but not before. I also find that the Fed's policy stance more closely matches the preferred stance of the banking industry after 1979.