Conduct of Monetary Policy: Hearing Before the Committee on Banking and Financial Services, House of Representatives, One Hundred Fifth Congress, First Session, July 24, 1997, Volume 4U.S. Government Printing Office, 1997 - 287 páginas |
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Palavras e frases frequentes
accelerating American believe budget business cycle central bank Chairman Greenspan Chairman LEACH changes Chimerine Committee competition CONGRE CONGRESS THE LIBRARY costs decline deficit economic growth economists Eisner estimates expansion fact factors Fed policy Fed's federal funds rate Federal Reserve fiscal policy forecast FRANK full employment funds rate Galbraith goals going grow growth rate hearing higher Humphrey-Hawkins important income inequality inflation expectations inflation rate inflationary investment issue James K John Lipsky labor force labor markets long-term low inflation low unemployment lower MCDONOUGH measure ment Meyer monetary policy NAIRU natural rate past percent Phillips curve potential output price stability problem productivity growth question RARY rate of unemployment recent recession RESS rise Rivlin ROUKEMA Salomon Brothers stock market sustainable growth Taylor rule Thank thing tightening tion U.S. economy unem unemployed unemployment rate utilization rates wage increases workers
Passagens conhecidas
Página 59 - States, for example, the Employment Act of 1946 and the Full Employment and Balanced Growth Act of 1978 ("Humphrey-Hawkins") commit the federal government, including the Federal Reserve System, to the pursuit of real economic goals.
Página 274 - natural rate of unemployment," in other words, is the level that would be ground out by the Walrasian system of general equilibrium equations, provided there is imbedded in them the actual structural characteristics of the labor and commodity markets, including market imperfections, stochastic variability in demands and supplies, the cost of gathering information about job vacancies and labor availabilities, the costs of mobility, and so on.
Página 178 - CREDIT of the COMMITTEE ON BANKING AND FINANCIAL SERVICES of the US HOUSE OF REPRESENTATIVES...
Página 21 - I am pleased to have this opportunity to meet with you this morning to discuss my views on the conduct of monetary policy. I am well aware that, despite the recent good performance of the economy, some members of this committee have reservations about the conduct of monetary policy, specifically the decision to raise the federal funds rate 1/4 percentage point on March 25.
Página 274 - James Tobin once elegantly described the Phillips curve as a set of empirical observations in search of theory, like Pirandello characters in search of a plot. James K. Galbraith 95 At any moment of time, there is some level of unemployment which has the property that it is consistent with equilibrium in the structure of real wage rates. At that level of unemployment, real wage rates are tending on the average to rise at a "normal" secular rate. . . . A higher level of unemployment is an indication...
Página 52 - ... society. And I would certainly commend any efforts in Congress to deal with these issues, although these are particularly difficult ones to deal with. The average level of unemployment might be brought down through a variety of means — including education and training. Mr. JACKSON. Mr. Chairman, I have a couple of other questions that I would like to submit for the record in view of the time. However, Mr. Chairman, I do have one question that I do want to ask. My questions I will submit for...
Página 275 - We got the high inflation decade, and with it as clear-cut an experimental discrimination as macroeconomics is ever likely to see, and Friedman and Phelps were right.
Página 21 - While there may be, from time to time, differences about how to reach these common goals — indeed, it would be amazing if there were not — there is no disagreement about the goals. The history of business cycles has repeatedly taught us that the greatest risk to an expansion comes from failing to prevent an overheated economy. The best way to ensure the durability of this expansion is, therefore, to be vigilant that we do not allow the economy to overheat and produce the inevitable rise in inflation....
Página 22 - ... risks were weighted toward higher inflation. In March, my view was that there was sufficient momentum in growth to justify a forecast that utilization rates would rise materially further, in the absence of a change in policy. The policy action was clearly a preemptive one, not based on inflation pressures evident at the time, but on inflation pressures likely to emerge in the absence of policy action. As the Chairman has repeatedly emphasized, lags in the response to monetary policy make it imperative...
Página 282 - Taxonomy — the empty art of labeling existing unemployment as "structural," "frictional" or "cyclical" — has substituted for the development of theory bearing on action. The theories that have developed reinforce the message implicit in the taxonomy chosen: once frictional, structural and cyclical unemployment are allowed for, there is truly nothing left to be done. The cost of unnecessarily high unemployment itself must therefore, to some extent, rest on the conscience of the economics profession....