Macroeconomic Principles and Monetary Policy

  title={Macroeconomic Principles and Monetary Policy},
  author={J. Alfred Broaddus},
Using publicly available transcripts of FOMC meetings, Richmond Fed President Al Broaddus illustrates how he employed analytical macroeconomic principles on three occasions in the Open Market Committee. In a 1995 debate on inflation targeting, he argued that explicit targets help anchor price expectations and so enhance the Fed's ability to offset real disturbances without arousing fears of inflation or recession. In a 1994 discussion of foreign exchange intervention, he held that the Fed… CONTINUE READING