Abstract
A number of studies have estimated reaction functions focusing solely on economic state variables such as inflation and unemployment. Other reaction function studies have focused on political measures as regressors. In this study we include both sets of variables to see if political measures are significant when we control for economic state variables. Reaction functions are estimated for the 1959–91 period and for subperiods corresponding to the tenures of different Federal Reserve Board chairmen. We find significant effects for a measure of political influence on the Federal Reserve for the whole period and some subperiods.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.